Samsung Forecasts Worst Profit in Over a Decade as Tech Slump Hits Memory Chips
SEOUL—
Samsung
Electronics Co. said it expects a steep fall in its first-quarter profit, dropping to levels last seen during the financial crisis as an extended slump in the tech sector hits its memory-chip business hard.
Samsung said Friday that its operating profit for the January-March quarter was expected to have dropped by around 95.8% from the prior year to 600 billion won, or roughly $455 million, in what would be the smallest quarterly operating profit since 2009. Revenue for the three-month period is expected to drop by 19% from a year earlier to 63 trillion won.
Macroeconomic conditions and dampened consumer demand as well as inventory adjustments by customers led to the big plunge in profit, Samsung said in a statement accompanying the preliminary earnings release.
Write to Jiyoung Sohn at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
SEOUL—
Samsung
Electronics Co. said it expects a steep fall in its first-quarter profit, dropping to levels last seen during the financial crisis as an extended slump in the tech sector hits its memory-chip business hard.
Samsung said Friday that its operating profit for the January-March quarter was expected to have dropped by around 95.8% from the prior year to 600 billion won, or roughly $455 million, in what would be the smallest quarterly operating profit since 2009. Revenue for the three-month period is expected to drop by 19% from a year earlier to 63 trillion won.
Macroeconomic conditions and dampened consumer demand as well as inventory adjustments by customers led to the big plunge in profit, Samsung said in a statement accompanying the preliminary earnings release.
Write to Jiyoung Sohn at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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