South Korea’s Samsung Electronics Co Ltd (
www.samsung.com) has reported a 29% increase in third-quarter net profits and has announced a $10 billion share buy-back scheme.
“Favourable exchange rates and a renewed focus on components” were behind the increase, which breaks a run of seven consecutive quarterly declines.
However, Samsung warned that earnings might dip in the fourth quarter, when exchange rate benefits will be “less pronounced”.
Samsung sets prices for most components in dollars, and benefits when those sales are translated back into won if the Korean currency is weak. The dollar was around 10% higher against the won at the end of the third quarter, compared with a year earlier.
The company’s semiconductor unit saw growth surge to a quarterly record of 3.6 trillion won, up 60% from a year ago, while the mobile phone division saw a 40% on-year increase in third-quarter operating profits, with a “significant increase” in sales of smart-phones over the period.