Dow Jones Newswires: Samsung expects third-quarter operating profit to sink 78% on year

by | Oct 10, 2023 | Stock Market

Samsung Electronics
expects its third-quarter operating profit to fall 78% from a year earlier, which would miss market expectations, as its flagship semiconductor business is seen as still struggling to exit an industry downturn. The South Korean tech giant said in a preliminary earnings forecast that its operating profit came in at 2.4 trillion won ($1.79 billion) for the July-September quarter, compared with the profit of KRW10.85 trillion for the same period in 2022.

The company’s operating profit estimate was below the FactSet-compiled market consensus forecast of KRW2.826 trillion for the September quarter. Revenue is expected to drop 13% on year to KRW67 trillion for the third quarter, Samsung said. The world’s largest manufacturer of memory chips, smartphones and televisions is seen as still reeling from the global tech-industry downturn that weighs heavily on its once cash-cow semiconductor segment, despite some signs of a recovery. Its chip-making segment had been in the red for a second consecutive quarter until June. Samsung has since continued cutting its overall semiconductor output to reduce inventory and support prices for memory chips, though trying to meet brisk demand for some powerful computing chips in the artificial intelligence frenzy. Samsung’s pr …

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