South Korean telecom giant Samsung Electronics expects to post a record operating profit of more than $14 billion in the fourth quarter, it said on Tuesday, boosted by huge demand for its memory chips.
The booming chip unit has helped the firm overcome a bribery scandal that saw its de facto head jailed and the embarrassing Galaxy Note 7 debacle.
Samsung estimated operating profits would hit 15.1 trillion won in October-December, nearly double the 9.2 trillion won posted a year earlier.
However, the figure was below analyst forecasts, which averaged 16.1 trillion won in a survey by Bloomberg News.
Full-year operating profit was projected at 53.6tn won, also a record.
Samsung was dealt a blow in August when Lee Jae-Yong was jailed after being found guilty of bribery, perjury and other charges relating to payments made by Samsung to ousted president Park Geun-Hye’s secret confidante.
Lee is appealing his five-year sentence and says he is innocent.
That came after a damaging recall in 2016 of its flagship Galaxy Note 7 over exploding batteries, which cost Samsung billions of dollars and dealt a blow to its global reputation.
The firm’s share price sank 3.11% to 2.52 million won in Seoul, with analysts raising concerns about the impact of a stronger won and lower chip prices
But Greg Roh, an analyst at HMC Investment Securities, said the figures were “satisfactory” despite missing estimates.
