Samsung Electronics Co Ltd (SMSN.L,SSNNF.OB,SSNLF.OB) reported its lowest quarterly operating profit in 14 years, as prices for memory chips continued to fall and demand remained weak.
The South Korean electronics giant reported a profit for the first quarter that dropped 87.41 percent from last year. Operating profit for the quarter also dropped 95.47 percent from the prior year. Quarterly sales declined 18.05 percent from the previous year.
The company expects that semiconductor demand will gradually recover in the second-half of 2023.
In the second quarter, the System LSI Business expects overall demand to remain at a similar level, but there is some visibility regarding declines in customer inventories for products such as sensors and panel DDIs.
In the second quarter, Samsung Display Corporation or SDC expects to see results decline year-on-year due to the global economic slowdown increasing seasonal effects.
SDC plans to maintain its dominance in the high-end market and maximize sales by promoting the adoption of OLED panels throughout its main customer’s entire lineup and by accommodating their mass production of new products in the second half. For large panels, while demand is likely to remain weak, sales should grow as new products for 2023 roll out in earnest.
In the second half, the smartphone market is expected to increase in both volume and value amid signs of a global economic recovery. As a result, the MX Business expects especially strong demand in the premium segment.
Samsung’s net income attributable to the shareholders of the parent company for the first-quarter dropped 87.41 percent to 1.40 trillion Korean won from 11.13 trillion won in the same quarter last year.
Operating profit for the quarter dropped 95.47 percent to 0.64 trillion won from the previous year.
Quarterly sales were 63.75 trillion won, an 18.05 percent decrease from a year earlier.
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