Samsung Electronics reports 14 trillion won operating profit in second quarter
Samsung Electronics reported lower-than-expected sales and operating profit in a preliminary second-quarter earnings announcement on Thursday, as the pace of growth slowed due to lower demand for smartphones and home appliances.
The world's biggest smartphone and memory chip maker is forecasting an operating profit of 14 trillion won ($10.7 billion) in the April -to-June period, up 11.38 percent on year. The figure falls short of the market consensus of 14.7 trillion won, as reported by FnGuide.
Sales are expected to come in at 77 trillion won, up 20.94 percent over the year-earlier period and lower than the estimate of 77.2 trillion won.
The results bring an end to an extraordinary winning streak over three quarters, with the company posting record sales from the third quarter of 2021 to the first quarter of this year.
Neither segmentation nor net profit were provided in the guidance released by the company Thursday.
According to analysts, the semiconductor business was probably the biggest contributor to earnings while the company's smartphone and consumer electronics businesses lagged.
As people struggle to afford necessities in an inflationary environment, demand for electronics devices has weakened, especially compared to the height of the pandemic, when people spent more time online at home.
With weaker demand and possible gluts, Samsung Electronics is facing historically-high inventory levels and is cutting production, clouding prospects.
BY PARK EUN-JEE [firstname.lastname@example.org]