Samsung Electronics reports worst quarterly profit in 8 years

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Samsung Electronics reports worst quarterly profit in 8 years

Published: 06 Jan. 2023, 09:03 Updated: 06 Jan. 2023, 10:10

Visitors try out Samsung Electronics Galaxy smartphones during the 2022 World IT show at the Convention and Exhibition center in Seoul, South Korea, on April 20, 2022. [AP]

Samsung Electronics posted 4.3 trillion won ($3.3 billion) in operating profit in the fourth quarter of 2022, according to an earnings guidance released by the company Friday.

The preliminary figure is down 69 percent on year and is the worst quarterly result since the third quarter of 2014. It is far below the consensus estimate of 6.9 trillion won as compiled by FnGuide.

Results were hit by falling memory chip prices and slumping sales of electronic devices.

Fourth quarter sales are forecast at 70 trillion won, down 8.58 percent on year, and short of the market expectation of 72.7 trillion won.

For full-year 2022, the company expects 43.4 trillion won in operating profit, down 16 percent. Sales are forecast at 301.8 trillion won in 2022, up 7.9 percent.

No breakdowns were provided.

The average selling prices for flash memory products fell 30 percent in the fourth quarter and DRAM prices 25 percent, according to Wi Min-bok, an analyst at Daishin Securities.

Samsung Electronics will report its actual earnings on Jan. 31. Preliminary forecasts are normally in line with the actual.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]