Hong Kong (CNN Business) Samsung's operating profit plunged 56% in the third quarter compared to last year as the company continues to struggle with sluggish demand for memory chips. But the company said chip sales should pick up in 2020, drawing a line under the prolonged industry downturn.

The South Korean technology giant on Thursday reported operating profit of 7.8 trillion Korean won ($6.7 billion) for the quarter ending September.

That's down from 17.57 trillion Korean won ($15.1 billion) for the same period a year ago. Sales fell 5% to 62 trillion won ($53 billion) from the same period last year but improved 10% from the previous quarter.

"Third quarter profit fell sharply from a year earlier but improved from the previous quarter, as stronger smartphone sales and improved utilization in mobile OLED screens were weighed down by continued weakness in the memory chip market," the company said in a statement.

Samsung SSNLF Shares inwere up 2% in morning trade in Seoul.