Samsung Electronics reports 86 percent drop in first quarter net

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Samsung Electronics reports 86 percent drop in first quarter net

Published: 27 Apr. 2023, 09:23 Updated: 27 Apr. 2023, 10:54

A traffic light is amber in front of a Samsung Electronics building in Seocho, southern Seoul, on Jan. 6. [YONHAP]

Samsung Electronics reported an 86 percent on-year plunge in net profit to 1.57 trillion won ($1.17 billion) in the January-March period, Thursday, weighed down by weak chip demand worldwide.

The figure missed the market consensus of 1.24 trillion won compiled by Company Wise.

Its semiconductor business alone suffered an operating loss of 4.58 trillion won, compared to the previous year’s profit of 8.45 trillion won.

The company’s total operating profit dropped 95 percent in the first quarter to 640 billion won.

The figure exceeded the preliminary 600 billion won published by the company on April 7, and fell far short of the market expectation of 1 trillion won.

Sales in the first quarter came in at 63.75 trillion won, in line with its forecast and below the analyst expectation of 64.2 trillion won.

The Device Solution division, which includes the semiconductor business, swung to red with an operating loss of 4.58 trillion won. Its revenue dropped 49 percent on year to 13.73 trillion won.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]