Samsung's third-quarter operating profit fell 31.7% year-on-year

Samsung Electronics estimated on Friday that its operating profit in the third quarter was 10.8 trillion won (about 54.108 billion yuan), down 31.7% from the same period last year, the first year-on-year decline in nearly three years. Operating income in the third quarter is expected to increase by 2.7% to 76 trillion won (about 380.76 billion yuan). Samsung did not provide figures on net profit.

Samsung's third-quarter operating profit was 8.3 percent below average forecasts, according to a survey by Yonhap Infomax, a financial data firm for Yonhap News Agency, ahead of its final earnings report at a later date.

Greg Roh, head of research at Hyundai Motor Securities, said: "As the world's No. 1 memory chip maker, leading in TVs and mobile OLED displays, and top in smartphone shipments, Samsung is highly sensitive to the economy and its profits are easy to match with demand. hook up."

This would be Samsung's first operating profit decline since the first quarter of 2020 and the lowest quarterly profit level since the first quarter of 2021.

Prices for some DRAM memory chips widely used in smartphones and personal computers plunged 14% in the quarter, while prices for NAND flash memory chips used for data storage fell 8%, according to TrendForce.

Samsung's stock has fallen about 30% this year. By comparison, the Philadelphia Semiconductor Index fell 37%.

Samsung's mobile business is also expected to see a profit slump, with forecasts showing profits falling 17% to 2.8 trillion won, even as the company's pricey new foldable phone launched in the quarter raised average selling prices.

Analyst Kim Yang-Jae of Daol Investment & Securities estimated that Samsung's smartphone shipments fell 11% in the quarter from a year earlier to about 62.6 million units after distribution channels cut orders.

Post a Comment