Samsung Electronics registered a 16% net profit increase to 2.19 trillion won ($2.29 billion) for the third quarter ended September 30, from 1.88 trillion ($1.97 billion) in the same period last year, according to a Reuters report.
Its operating profit, however, fell 13% as margins in its mainstay businesses -chips, flat screens and mobile phones - slipped from a year ago, despite an improvement in performance from the previous quarter, Reuters said.
Samsung's memory chip division again fuelled the firm's profits in the third quarter, with dynamic random access memory (DRAM) putting up strong numbers, thanks to capacity limitations and solid demand for personal computers.
Samsung, the world's top memory chipmaker and third-largest mobile phone producer, lifted its 2006 capital spending plan by 11% due to strong chip demand expected in 2007, Reuters said. It also forecast another record handset sales in the fourth quarter.
The company gave a bullish fourth-quarter outlook after delivering a forecast-beating 16% rise in third-quarter net profit, boosted by gains from its overseas plants and its flat screen joint venture with Japan's Sony.
'Fourth-quarter prospects are good, as external factors look favorable. The currency situation is stable, oil prices are down, memory sales will be strong and handsets should be a hit,' said Michael Min, an analyst at Korea Investment & Securities.