Samsung Electronics Vice Chairman Lee Jay-yong. (Photo: Samsung Electronics)

Samsung Electronics’ consumer electronics (CE) and display (DP) businesses’ better-than-anticipated business performances are partly contributable to posting an estimated 17.5 trillion won in sales for the third quarter of 2018, the largest-ever quarterly performance.

The CE and DP businesses fared relatively well thanks to a rise in premium TV set sales.

According to a provisional consolidated financial statement filed with the Financial Supervisory Service (FSS) for the 3rd quarter of the year, Samsung Electronics chalked up 65 trillion won in sales and 17.5 trillion won in operating profit. The figures represent a 4.75 percent rise and a 20.44 percent jump over the same period of the previous year, respectively.

According to securities business circles’ estimates, based on the provisional business performances, the CE business will likely see the 3rd quarter operating profit of about 700 billion won, a 59 percent jump over 440 billion won in the same period of the previous year and a 37 percent surge from 510 billion won in the previous quarter.

The CE business’ better-than-expected operating profit was owed to a rise in sales of QLEV TVs, the electronics company’s mainstay products, coupled with a rise in air-conditioner sales stemming from an unprecedented summer heat.

Park Kang-ho, a researcher with Daeshin Securities Co., said the CE business’ releasing new models of QLEV TVs in the second quarter has led to a rise in the 3rd quarter. In July when the weather reached record temperatures, the company’s air conditioner sales also jumped, he added. The lower unit prices of premium QLED TVs was attributable to a drop in prices of 50-inch or higher LCDs.

The DP business is estimated to fare well thanks to a rise in the supply of LCDs on back of premium TV products and an increase in the supply of small- and medium-sized OLED displays.

Based on provisional figures, the DP business is projected to post 1.1 trillion won in operating profit, a 785 percent jump over 140 billion won in the previous quarter.

In particular, the OLED business is expected to turn around to a profit. The turnabout is owed to better profits on the back of value-added flexible OLED displays supplied to Galay Note 09 and iPhone XS.

Meanwhile, Samsung Electronics is projected to log 65 trillion won in sales and 17 trillion won in operating profit in the third quarter on the back of a streak of charming performances by the semiconductor business.

The semiconductor business’s portion of operating profit rose to 79 percent in the 3rd quarter following 78 percent in the previous quarter.