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Samsung expects profit to nearly triple in third quarter

The electronics giant expects operating profit to increase 178 percent from a year ago when it was grappling with its Note 7 disaster.

The Galaxy Note 8 appears to be helping Samsung extinguish the ghost of the Note 7.
Josh Miller/CNET

Samsung appears to have bounced back from its Galaxy Note 7 disaster -- in a big way.

The South Korea electronics giant said it expects to record its biggest operating profit ever in the third quarter, thanks largely to continued strong demand for memory chips. The company said its operating profit will come in at around 14.5 trillion won ($12.8 billion), nearly tripling (178 percent) from the year-ago period when it was suffering the fallout from its Note 7 recall.

The company is also expected to record revenue of 62 trillion won ($5.4 billion), an increase of 29.7 percent from a year earlier. The guidance, released Thursday ahead of full earnings later this month, didn't provide specific divisional results.

Samsung's operating profit was likely helped by brisk sales of the Galaxy Note 8, the smartphone it launched in mid-September as the follow-up to the Note 7. Samsung was forced to recall the Note 7 after a battery flaw caused dozens of the phones to explode or burst into flames, costing the company upwards of $5 billion in lost sales and other expenses.

The company's bottom line also likely benefited from continued strong global demand for memory chips and the sales of organic light-emitting diode (OLED) screens to other smartphone makers, such as rival Apple.

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