Samsung report 148pc soar in profits, shares double

Samsung Electronics (KRX:005930) has announced record-breaking profits for the July to September period, with the figures released just two weeks after chief executive Kwon Oh-Hyun’s resignation.

The tech giant said in a statement that the 148 percent soar in profits was thanks to the strong demand for memory chips and a growth in smartphone sales with the new generation Galaxy Note 8.

Tuesday’s numbers have been described by the firm as “overall robust performance”. The profits mark a significant turnaround after the 2016 scandal where the firm had to recall of its flagship Note 7 smartphone, following the fiasco with its overheating and exploding batteries.

Amidst the positive profits, the firm also announced a major reshuffle of its top executives.

The chief financial officer, Lee Sang-hoon, has been put forward as board chairman. He will replace Kwon Oh-hyun who is planning to step down in March.

Kwon has played a lead role in the company, acting as head since vice-chairman Lee Jae-yong was arrested in February on corruption charges. Lee is currently appealing his five-year sentence for bribery and embezzlement. 

“The next generation of leaders are well suited to accelerate the pace of innovation and address the demands of the connected world,” said Samsung in a statement.

“The reshuffle basically signals a generational shift for the father-to-son succession at Samsung and will strengthen Lee Jae-yong’s control,” said head of research group CEO Score, Park Ju-geun.

Samsung said: “Looking ahead to the fourth quarter, the company anticipates tight supply and demand conditions to continue for the memory business due to strong demand for servers and mobile devices,”

Samsung’s share prices have doubled since the start of 2016 to reached record-breaking highs. They closed up 1.9 percent at a record Won2.54 million on Tuesday.

The tech giant also plans to pay around $26 billion in dividends to shareholders over the next three years.