Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Samsung reports drop in Q3 net profit

SEOUL, October 24 – South Korea\’s Samsung Electronics, the world\’s largest memory chip maker, on Friday reported a 44 percent fall in third-quarter net profit amid the global economic downturn.

Net profit was 1.22 trillion won (873.3 million dollars) in July-September compared to 2.19 trillion won a year earlier, the company said in a statement.

Sales rose 15.4 percent year-on-year to 19.2 trillion won but operating profit tumbled 51 percent to 1.02 trillion won.

Profit from Samsung\’s semiconductor division slumped 74 percent to 240 billion won on sales of 4.78 trillion won.

Samsung, also the world\’s largest maker of liquid crystal display screens, said profit margins for its LCD business fell to 8 percent from 21 percent in the second quarter due to a global oversupply.

The company, the world\’s second-biggest mobile phone maker, sold 51.8 million mobile phones in the third quarter compared with 45.7 million in the second.

Profit margins in the handset division, however, fell to 7 percent in July from 13 percent in the previous quarter.

"The market environment in the third quarter proved challenging amid rising costs and a downturn in the global economy," Chu Woo-Sik, Samsung\’s senior executive in charge of investor relations, said in the statement.

"We foresee the coming months to be an even more challenging period."

Advertisement. Scroll to continue reading.

"Nevertheless, our strategy of creating differentiated product portfolios has protected Samsung from significant disruptions in revenues, and enabled the company to outperform market expectations."

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...