Samsung: Operating profit falls 69 percent8. January 2023
Samsung: Operating profit falls 69 percent
In its latest earnings forecast, Samsung Electronics Co. reported that its operating profit is likely to have fallen 69% in the most recent quarter, the lowest in eight years.
The world’s largest maker of smartphones, memory chips and televisions has been crushed by falling prices and weak demand for its products during the economic slowdown.
• According to preliminary figures, Samsung’s October-December operating profit fell to 4.3 trillion won (US$3.37 billion) from 13.87 trillion won (US$10.9 billion) a year earlier, the smallest quarterly profit since 2014
• Revenue for the quarter reportedly declined 9% to reach 70 trillion Korean won (US$55.1 billion).
• All of Samsung’s businesses have faced challenges recently, although chips and mobile units have been particularly hard hit, according to Lee Min-hee, an analyst with BNK Investment & Securities.
• Samsung intends to release its full financial statements on January 31st.
• Samsung’s preliminary Q4 results appeared worse than Q3 results.
• For the quarter, operating profit fell more than 31%, the first decline in three years, amid the downturn in the chip memory market.
• In October, Samsung appointed its heir and de facto leader, Lee Jae-yong, as CEO.