Samsung reports big profit decline

Hanno Labuschagne

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Samsung reports big profit decline

Samsung Electronics Co. reported a 38% decline in profit due to falling memory chip prices, a warning sign for the global technology industry as it navigates trade tensions and the coronavirus outbreak.

Net income tumbled to 5.23 trillion won ($4.4 billion) for the three months ended December, compared with the 5.31 trillion won average of projections. The miss is a surprise because Samsung carefully orchestrates earnings, including reporting preliminary numbers a few weeks before final results. The early numbers this month beat analyst estimates.

Samsung has been struggling with a stubborn slump in the memory chip business, historically its most profitable division, and said the weakness would affect first quarter results. The company also flagged soft demand in the display business for some premium mobile screens and a bigger loss on large displays because of sliding LCD prices.

[Bloomberg]
 
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