Samsung 3Q earnings likely to beat the records

Samsung Electronics, the world’s biggest seller of computer memory chips and mobile phones estimate that third-quarter operating profit likely to have higher profits from the previous quarter’s record along with signs that growth in global demand is waning.

According to the company, it anticipates combined operating profit between US$4.1 billion to US$4.5 billion for the three months ended Sept. 30. That would be higher than the US3.78 billion record in the third quarter last year but less than the US4.49 billion accumulated in the second quarter of 2010.

Aside from supremacy in chips, Samsung is the world’s biggest seller of liquid crystal displays and flat-screen televisions and ranks No. 2 in mobile phone handsets after Finland’s Nokia Corp.

Samsung estimated consolidated sales  between US$34.98 billion and US$36.77 billion for the third quarter.

According to spokesman Nam Ki-yung, the company gave no reason for the expected quarterly results and plans to release details when it formally announces third-quarter earnings at the end of this month.

Operating profit was seen as a direct indicator of business performance before taxes, dividends, asset sales and other items that are figured into net profit or loss.

Samsung started issuing earnings estimates, or guidance, last year expecting the increased transparency would help minimize market speculation over its performance. The estimates include the performance of its overseas and domestic subsidiaries.