Samsung Electronics, the South Korean tech giant, has announced that it anticipates operating profit for the third quarter to be approximately 9.10 trillion won, representing a remarkable 274% increase from last year’s figures. Despite this surge, the projection fell short of expectations set by the LSEG.
Analysts surveyed by the LSEG had forecasted an operating profit of 11.456 trillion Korean won ($7.7 billion) for the quarter, with anticipated revenue of 81.96 trillion won ($61 billion) for Samsung.
The Vice Chairman of Samsung, Jun Young-hyun, who recently took over as head of the Device Solutions Division, issued an apology in response to these projections.
Samsung wrote in a statement that the dip in memory business performance is attributed to “one-time costs and negative effects,” such as adjustments in inventory by mobile customers and increased supply of legacy products by Chinese memory firms. Delays in shipments of “HBM3E” chips to key clients have also affected the company.
Meanwhile, Macquarie Equity Research analysts highlighted the importance of Samsung staying adaptable to memory supply control due to potential repercussions from the weakening of conventional DRAM, commonly used in laptops, workstations, and PCs.
As per a report by Reuters in September, Samsung had reportedly instructed its global subsidiaries to trim down staffing levels by 30% in certain units.
Reflecting these challenges, Samsung’s shares on South Korea’s stock exchange have slumped by 22% year-to-date. The company is scheduled to release comprehensive third-quarter results later this month, with its shares dropping by 0.98% after the profit forecast disclosure.
