Samsung Expects 52% Rise in Quarterly Operating Profit

Technology giant Samsung Electronics is forecasting 52% jump in profit for the last three months of 2021, lifted by resilient demand for memory chips and improved returns from its contract chip-making business.

The world’s biggest smartphone and memory-chip maker expects operating profit of about 13.8 trillion South Korean won, equivalent to about $11.4 billion, for the quarter ended Dec. 31. That compares with about 9.05 trillion won for the year-earlier quarter.

Samsung’s 005930, +1.82% estimated fourth-quarter operating profit was below market expectations but the electronics giant said the drop reflected a one-time bonus paid to employees.

The Suwon, South Korea-based company estimates it generated 76 trillion in sales, around a 24% gain from a year ago and a quarterly revenue record for the company.

Samsung’s top-line boost reflects ongoing strength for chip makers that have enjoyed elevated demand during a long-lasting supply crunch. The company is considered a leader for the tech world as it is both a major electronics maker and components supplier to big tech firms including Apple Inc. AAPL, -1.67%  and Sony Group Corp. 6758, +0.59%.

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