Tuesday, April 23, 2024
spot_img

Samsung forecasts 35% drop in fourth-quarter operating profit, citing weak demand for semiconductors

Date:

Share post:

spot_img
spot_img

Shillong, January 9: Samsung Electronics anticipates a 35% year-on-year decline in its operating profit for the fourth quarter of the previous year, primarily attributed to sustained weak demand for its core semiconductor division.

As the world’s leading manufacturer of memory chips and smartphones, Samsung estimates its fourth-quarter operating profit at 2.8 trillion won ($2.1 billion), a decrease from the 4.3 trillion won recorded during the same period in 2022.

As per IANS, the forecast fell short of analysts’ expectations, with an average estimate of 3.9 trillion won from a survey conducted by Yonhap Infomax, the financial data firm of Yonhap News Agency. Samsung also indicated a 4.9% decline in fourth-quarter sales, estimated at 67 trillion won, according to a regulatory filing.

Looking at the entire year of 2023, Samsung foresees an 85% plunge in operating profit to 6.54 trillion won. This marks the first time since 2008, during the global financial crisis, that the company’s annual operating profit has fallen below 10 trillion won. Annual sales for the previous year are expected to decrease by 15% to 258.16 trillion won.

Following the announcement, Samsung’s shares experienced a brief increase of up to 0.65%.

Analysts had anticipated an operating loss of approximately 2 trillion won for Samsung’s semiconductor division last year. According to SK Securities analyst Han Dong-hee, Samsung took measures to address a supply glut by reducing semiconductor production in the latter part of the previous year.

Despite the challenges in the semiconductor sector, Samsung’s smartphone division is predicted to report a robust profit for the previous year, thanks to the strong sales performance of its flagship handsets, according to industry analysts.

spot_img
spot_img

Related articles

BJP winning 35 seats in Bengal will guarantee freedom from illegal infiltration: Amit Shah

Kolkata, April 23: If the BJP winning 18 seats in West Bengal during the 2019 Lok Sabha polls...

Congress still in a dilemma over Khammam Lok Sabha ticket Hyderabad, April 23

Hyderabad, April 23: With just two days to go for the filing of nominations for Lok Sabha elections...

CM Kejriwal, K Kavitha’s judicial custody extended in money laundering case till May 7

New Delhi, April 23:  A Delhi court on Tuesday extended till May 7 the judicial custody of Chief...

VPP MLA slams govt for failing to relocate residents of Them Iew Mawlong

Shillong, April 23: The Voice of People Party (VPP) MLA of North Shillong, Adelbert Nongrum on Tuesday slammed...