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Samsung Q3 Operating Income Down 13%

10/16/2006 10:45:00 AM Eastern

Seoul, South Korea — Samsung Electronics’ operating income for the third quarter fell 13 percent to $1.9 billion, while its total revenue for the period rose 5 percent to $15.9 billion, as the company suffered sales drop-offs across its business lines.

For the quarter ended Sept. 30 Samsung saw its semiconductor, LCD, telecommunications network, and digital media businesses all suffer losses. The lone exception was digital appliances, which saw operating profit grow 67 percent, although revenue for the quarter fell 2.1 percent compared to the same period in 2005.

Samsung executives expect a strong rebound for the fourth quarter as DRAM pricing should stay strong and the demand for NAND memory, used in a variety of portable devices, will grow. Samsung is also counting on a fourth quarter boost in sales and average sales prices of 3G phones.