Samsung Electronics Co. announced on Tuesday that its second-quarter operating profit is estimated to have plummeted by 55.9 percent compared to the previous year. This significant drop, attributed to a sluggish chip business and the impact of U.S. tariffs, fell short of market expectations.
The tech giant, recognized as the world’s largest memory chip manufacturer, projected an operating profit of 4.59 trillion KRW (3.4 billion USD) for the quarter ending in June. This figure represents a sharp decline from the 10.44 trillion KRW reported a year earlier, according to the earnings guidance released by Samsung Electronics.
The operating profit also saw a substantial quarter-on-quarter decrease of 31.2 percent from 6.69 trillion KRW.
This performance fell 23.4 percent below the average estimate, based on a survey conducted by Yonhap Infomax, the financial data subsidiary of Yonhap News Agency.
Revenue experienced a marginal decline of 0.1 percent, reaching 74 trillion KRW. The company did not disclose data on net earnings.
In a separate statement, Samsung Electronics cited inventory replenishments and the impact of the U.S. ban on exports of advanced AI chips to China as key factors contributing to the sharp quarter-over-quarter profit decline.
The company is scheduled to release its comprehensive earnings report later this month. (Yonhap)
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