SEOUL: South Korean telecom giant Samsung Electronics expects to post a record operating profit of more than $14 billion in the fourth quarter, it said Tuesday, boosted by huge demand for its memory chips.
The booming chip unit has helped the firm overcome a bribery scandal that saw its de facto head jailed and the embarrassing Galaxy Note 7 debacle.
Samsung estimated operating profits would hit 15.1 trillion won in October-December, nearly double the 9.2 trillion won posted a year earlier.
However, the figure was below analyst forecasts, which averaged 16.1 trillion won in a survey by Bloomberg News.
Full-year operating profit was projected at 53.6 trillion won — also a record.
Samsung was dealt a blow in August when Lee Jae-Yong was jailed after being found guilty of bribery, perjury and other charges relating to payments made by Samsung to ousted president Park Geun-Hye’s secret confidante.
Lee is appealing his five-year sentence and says he is innocent.
That came after a damaging recall in 2016 of its flagship Galaxy Note 7 over exploding batteries, which cost Samsung billions of dollars and dealt a blow to its global reputation.
But the travails have not impacted demand for Samsung Electronics’ products.
Fourth-quarter sales were projected to have jumped 23.8 percent year-on-year to 66 trillion won, with full sales estimated at 239.6 trillion won.
The firm’s share price sank 3.11 percent to 2.52 million won in Seoul, with analysts raising concerns about the impact of a stronger won and lower chip prices
“The won-dollar exchange rate is worrisome,” Lee Seung-Woo, an analyst at Eugene Investment and Securities, said in a report before the announcement, according to Bloomberg News.
But Greg Roh, an analyst at HMC Investment Securities, said the figures were “satisfactory” despite missing estimates.
“I think Samsung overspent on marketing because it was the end of the year,” Roh said, and added: “The first quarter for this year looks good for Samsung.”
Samsung will reportedly roll out its new flagship smartphone, the Galaxy S9, next month, to compete with rival Apple’s iPhone X.
Analysts say that the launch of the new model will boost the mobile division, which faces fierce competition from Apple and Chinese manufacturers.
Since the arrest of some of its top executives last year, the wider Samsung Group — whose turnover is equivalent to a fifth of South Korea’s gross domestic product — has dismantled its Future Strategy Office, the coordinating body that oversees major decisions such as acquisitions or entering new business.
The group described the move as a “reform plan,” which would allow each unit — including Samsung Electronics, its flagship subsidiary — to run more independently in a transparent manner.
Samsung Electronics announced last October the first major reshuffle in its top leadership since 2014, when the wider group’s chairman Lee Kun-Hee suffered a heart attack that left him bedridden.
The company replaced each of the three co-CEOs who lead its semiconductor, mobile and TV units with younger executives, after its chief executive Kwon Oh-Hyun stepped down saying the South’s biggest firm was facing an “unprecedented crisis.”
The company is set to release its final earnings report later this month.
Samsung expects record fourth-quarter profit of more than $14 billion
Samsung expects record fourth-quarter profit of more than $14 billion
Major airlines suspend, reroute flights amid US-Israel strikes on Iran
- Saudia says decision taken in line with aviation safety and security standards
- Emirates said it temporarily suspended it's operations out of Dubai
RIYADH: Major international airlines across the Middle East and South Asia have suspended, canceled or rerouted flights following ongoing US-Israel attacks on Iran and the resulting airspace closures, according to official statements issued via X.
Saudia said in an official statement that it had canceled a number of flights due to developments in the region and the closure of airspace.
The airline said the decision was taken in line with aviation safety and security standards, noting that its Emergency Coordination Center is closely monitoring developments with relevant authorities.
Saudia urged passengers to verify the status of their flights before heading to the airport and said guests would be notified of updates through the contact details associated with their bookings.
The carrier added that further information would be announced in a subsequent statement if available.
بيان رسمي من #الخطوط_السعودية pic.twitter.com/CHfjKj9yLX
— Saudia Group | مجموعة السعودية (@SaudiaGroup) February 28, 2026
Air Arabia said its flights were experiencing cancellations, delays or rerouting as a result of the evolving situation and airspace closures.
The airline advised passengers to check the status of their flights before traveling to the airport by visiting its website or contacting its call center.
Customers booked on affected flights will be notified directly, the airline said, adding that further updates would be provided as the situation develops.
Air India announced a broader suspension, stating that “in view of the developing situation in parts of the Middle East, all Air India flights to all destinations in the Middle East have been suspended.”
The airline said it remains committed to maintaining the highest standards of safety for passengers and crew and will continue to assess the safety and security environment for flight operations, adjusting services proactively as required.
Air India said its teams would extend necessary support to passengers and advised customers to check flight status online or contact its 24/7 call center for assistance.
#TravelAdvisory
— Air India (@airindia) February 28, 2026
In view of the developing situation in parts of the Middle East, all Air India flights to all destinations in the Middle East have been suspended. We remain committed to maintaining the highest standards of safety for our passengers and crew. We will continue to…
All flight operations at Dubai International and Dubai World Central – Al Maktoum International are suspended until further notice, according to a post by Dubai Media Office on X.
Dubai-based Emirates reported that regional airspace closures had caused disruption to several of its flights and that the airline had temporarily suspended its operations from its hub Dubai.
The airline said it is actively monitoring the situation, engaging with relevant authorities and adjusting operations in line with the latest developments.
The carrier apologized to affected customers and said it is assisting them with rebooking, refunds or alternative travel arrangements, reiterating that the safety and security of passengers and crew remain its highest priority.
Due to multiple regional airspace closures, Emirates has temporarily suspended operations to and from Dubai.
— Emirates Support (@EmiratesSupport) February 28, 2026
Emirates urges customers to check https://t.co/Ucm3UswfVh and https://t.co/yehFUeWZQq for the latest updates before proceeding to the airport.
We are actively monitoring… pic.twitter.com/SLDC7iNaUN
Qatar Airways confirmed a temporary suspension of flights to and from Doha due to the closure of Qatari airspace.
The airline said it is working closely with government stakeholders and relevant authorities to support impacted passengers and will resume operations once the airspace reopens.
It warned that delays are anticipated when usual operations resume and said additional ground staff have been deployed at Hamad International Airport and other key airports to assist passengers.
Temporary Suspension of Qatar Airways Flights due to Qatari Airspace Closure
— Qatar Airways (@qatarairways) February 28, 2026
Qatar Airways Group confirms the temporary suspension of its flights to, and from, Doha due to the closure of Qatari airspace.
The airline is working closely with government stakeholders and the…
Meanwhile, Al Jazeera reported that British Airways had canceled flights to Tel Aviv and Bahrain, adding to the list of carriers adjusting operations.
Across their statements, airlines consistently cited airspace closures and safety considerations as the primary reasons for suspensions and disruptions, while urging passengers to monitor official channels for updates as the situation continues to evolve.
