12-04-2023, 10:33 PM
https://siliconangle.com/2023/04/07/sams...y-results/
Samsung discloses 96% profit slump in preliminary quarterly results
Samsung Electronics Co. Ltd. early today released preliminary financial results for the first quarter, disclosing that its operating profit likely dropped by 96% to a 14-year low.
It’s believed that the drop is partly the result of losses in the company’s semiconductor unit. To improve its bottom line, Samsung intends to scale back production of memory chips.
The electronics giant estimates that its operating profit in the quarter ended March 31 reached 600 billion won, the equivalent of $455.5 million. That’s a small fraction of the 14.12 trillion won, or $10.7 billion, it reported the same time a year ago. The sum represents Samsung’s lowest operating profit since 2009.
According to Reuters, analysts believe that the profit slump is partly the result of weak performance by the company’s semiconductor unit. Samsung is the world’s largest maker of DRAM and flash storage chips. Moreover, it operates a foundry business that makes processors for other companies.
Analysts reportedly estimate that Samsung’s chip business lost 2.1 trillion won, or $1.6 billion, in the first quarter. The loss can likely be attributed in large part to slowing demand for memory chips.
Samsung discloses 96% profit slump in preliminary quarterly results
Samsung Electronics Co. Ltd. early today released preliminary financial results for the first quarter, disclosing that its operating profit likely dropped by 96% to a 14-year low.
It’s believed that the drop is partly the result of losses in the company’s semiconductor unit. To improve its bottom line, Samsung intends to scale back production of memory chips.
The electronics giant estimates that its operating profit in the quarter ended March 31 reached 600 billion won, the equivalent of $455.5 million. That’s a small fraction of the 14.12 trillion won, or $10.7 billion, it reported the same time a year ago. The sum represents Samsung’s lowest operating profit since 2009.
According to Reuters, analysts believe that the profit slump is partly the result of weak performance by the company’s semiconductor unit. Samsung is the world’s largest maker of DRAM and flash storage chips. Moreover, it operates a foundry business that makes processors for other companies.
Analysts reportedly estimate that Samsung’s chip business lost 2.1 trillion won, or $1.6 billion, in the first quarter. The loss can likely be attributed in large part to slowing demand for memory chips.