South Korean tech giant Samsung Electronics announced on Friday that it forecasts an operating profit of around 10.8 trillion won (about 7.7 billion dollars) in the third quarter of the year, which would mean 31.7% less year-on-year.
This figure marks its lowest third-quarter profit forecast since 2019 and its first annual decline in third-quarter profit for three years, according to the July-September earnings forecast released by the company today.
Regarding its sales revenue, Samsung expects to add about 76 trillion won (about 54,000 million dollars), which represents an increase of 2.7% more than in July-September last year, the company detailed.
As usual in its earnings forecasts, Samsung did not mention its net profit or break down the data of its business branches in its earnings forecast report, which will be announced towards the end of the month.
Orders for the Suwon (south of Seoul-based) company’s main product, memory chips, are reported to have slowed as consumer purchasing power has weakened, leading to reduced demand for chips by consumers. electronics manufacturers.
In turn, the rise in global inflation is expected to reduce the demand for products such as televisions or mobile phones.
The war in Ukraine, China’s “zero covid” policy or inflation mean that the outlook for the second half of the year is not good for Samsung, since sales of electronic devices will continue to fall globally, which promises to drag down turn to the semiconductor industry.
Samuel Edwards is the name you must have heard many times while reading reports related to Finance, that’s what he is good at. From Major Investments to Stock Market Updates, he got ’em all. Be ready to blow your mind by the mind-blowing reports of Finance World from Samuel Edwards.