Samsung’s Profit Soars on Chips

Samsung Electronics Co. today reported that its third-quarter profit jumped 46% from a year earlier on better memory chip earnings, but fell from the previous quarter on sinking prices of flat screens for TV and computers.

The world’s top maker of liquid crystal displays is under pressure as consumers balk at buying expensive flat-screen televisions, creating a glut of supplies that is weighing on prices. Growing competition in mobile phones is also pressuring profit margins at Samsung, the third-biggest handset maker.

The semiconductor business is holding up well for the South Korean company, the world’s top memory chip maker, but even its prospects are uncertain.

Samsung, Asia’s most valuable technology firm, reported net income of 2.69 trillion won ($2.35 billion) for the third quarter, compared with 1.84 trillion won a year earlier. Sales rose 27% to 14.34 trillion won.

The rise in profit came as revived demand for computers lifted memory chip sales. Samsung has also improved its profit margins by cutting costs and focusing on high-end products.