Samsung Electronics Unveiled New generation Of Top Leaders

Jon Howard
November 1, 2017

South Korean tech giant Samsung Electronics has logged a record profit of 11.2 trillion won - €8.6 billion - in the July to September period, its best for any quarter.

The figures come only two weeks after chief executive Kwon Oh-Hyun resigned, saying the South's biggest firm was facing an "unprecedented crisis" and its current profitability was "merely a fruit of decisions and investment made in the past".

Samsung Electronics Co Ltd 005930.KS named a new generation of leaders at its three main businesses on Tuesday as it seeks to steady the ship following the arrest of group scion Jay Y. Lee earlier this year on charges including bribery.

Operating profit almost tripled in the third quarter from the same period a year earlier, to 14.5 trillion won ($12.91 billion), Samsung said in a regulatory filing, matching its earlier estimate. Lee Sang-hoon will resign as chief financial officer and has been recommended as chairman of the board.

The record earnings come after Samsung Electronics CEO and Vice Chairman Kwon Oh-hyun announced on October 13 that he plans to step down from management.

At the time the firm suffered a crippling blow to its mobile business due to the scandal over exploding batteries.

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But its profits and share price have rocketed this year, as global chip prices have soared with suppliers such as Samsung yet to catch up booming demand for high-powered processors used in handsets, computers and cloud storage servers.

His departure leaves key roles vacant - head of the components business including memory chips, head of the display business, as well as chairman of the board and a board director.

Samsung said it would double dividends next year to 9.6 trillion won and keep them at that level until 2020, as it responds to investor pressure to share its vast cash reserves and catch up with some of its more generous peers.

Samsung has sustained its lead in the market partly by investing massively in building and expanding semiconductor factories - often faster than its rivals.

To respond to a surge in demand for memory chips that power data centers and mobile devices, Samsung is spending 46.2 trillion won ($41.1 billion) in capital expenditure this year, including 29.5 trillion won to increase output of chips.

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