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“But there are limits. Those limits are customs barriers, and the loss of freedom of movement, for people and goods. If we get to that point, we will be obliged to take measures. “If we suddenly have to start manufacturing for the UK in the UK, and for Europe in Europe, there will necessarily be an impact on UK production,” Picat said in an interview. “We’re not going to be dogmatic about it, and there’s no question of punishing the UK. We’d take a look at our two factories, the state of our business, and look for a solution. But I don’t know where that will lead us in terms of the sustainability of our sites.”.
SEOUL (Reuters) - Samsung Electronics Co Ltd (005930.KS) is set to post a hefty jump in third-quarter profit to record levels after its chip unit put in a sterling performance on demand from data centers and improved production yields, The July-September quarter is, however, expected to mark a peak in earnings as a two-year super cycle of tight supply and soaring demand comes to an end, with prices of some types of chips already sliding sharply, The world’s top memory chipmaker, due to report preliminary results on Oct, 5, is forecast to book an 18 percent surge letter n cufflinks in operating profit to 17.2 trillion won ($15.5 billion), a Refinitiv poll of 15 analysts showed, Revenue is seen climbing 3.7 percent..
That handily beats operating profit growth of 6 percent in the previous quarter when its Galaxy S9 device missed sales targets and competition from cheaper Chinese-made phones ate into margins for its mobile business. The big boon for Samsung has been a spike in prices for DRAM chips, which help devices perform multiple tasks at once and are its main memory product. DRAMeXchange estimates the average price of server DRAM rose 14 percent in the third quarter from a year earlier, as companies build data centers for cloud computing.
But prices for NAND chips, used for longer-term data storage, more than halved in the same period as supply swamped demand, Those drops are expected to accelerate, while most analysts also predict DRAM prices will begin to decline, “Starting in the fourth quarter, I expect DRAM prices to fall by around 10 percent, That will hurt Samsung’s operating margin,” said Eo Kyu-jin, an analyst at eBest Investment & Securities, While Samsung is letter n cufflinks forecast to still book decent operating profit growth of 12 percent in the fourth quarter, analysts predict minimal profit growth in the first half of 2019 followed by profit declines, albeit small ones, in the second half, Refinitiv data showed..
(For a graphic on 'Samsung Electronics operating profit growth to slow' click tmsnrt.rs/2P3hudj). Even so, Samsung is expected to weather drops in DRAM chip prices better than rivals due to gains in production technology that allow it make smaller and faster chips per silicon wafer. “Even though the average selling price will decline next year, Samsung’s memory chip business will still have solid profits due to cost-saving measures,” said Avril Wu, senior research director at DRAMeXchange.
While its chip unit accounts for nearly 80 percent of operating profit, Samsung will also letter n cufflinks benefit from a rebound in prices for large displays, as well as increased orders for organic light-emitting diode (OLED) displays after Apple Inc (AAPL.O) launched new iPhones, Samsung’s display unit is expected to post about 812 billion won ($730 million) in quarterly operating profit, down 19 percent from a year earlier but more than five times the prior quarter, It will, however, have to deal with more competition next year as rivals from China and South Korea have started or plan to begin mass production of small-sized flexible OLED panels..
TOKYO (Reuters) - Mazda Motor Corp (7261.T) said on Tuesday that all of the vehicles it produces by 2030 will incorporate electrification, while 5 percent of its cars will be all-battery electric vehicles (EVs). The Japanese automaker joins a growing number of global automakers who are planning to reduce emissions by producing more gasoline-hybrid vehicles, plug-in hybrids and battery EVs. “By 2030, Mazda expects that internal combustion engines combined with some form of electrification will account for 95 percent of the vehicles it produces and battery electric vehicles will account for 5 percent,” the automaker said in a statement.
WASHINGTON (Reuters) - U.S, Commerce Secretary Wilbur Ross sees tens of thousands of jobs flowing back into the U.S, auto sector, especially among suppliers, thanks to the Trump administration’s new trade deal with Mexico and Canada, while industry executives and analysts are less upbeat as higher costs could hurt sales, Ross told Bloomberg TV on Monday that “the vast majority” of the 250,000 auto parts jobs lost in the United States would return under the new agreement, which is called the United letter n cufflinks States-Mexico-Canada Agreement (USMCA), The manufacturing part of U.S, auto sector employed about 950,000 people in August, according to federal data..