Samsung Elec flags 96% drop in Q2 profit as chip glut persists

SEOUL (Reuters) -Samsung Electronics Co Ltd reported a likely 96% plunge in second-quarter operating profit on Friday, largely in line with forecasts, as an ongoing chip glut drives large losses in the tech giant’s key business despite a supply cut.

The world’s largest memory chip and smartphone maker estimated its operating profit fell to 600 billion won ($458.83 million) in April-June, from 14.1 trillion won a year earlier in a short preliminary earnings statement.

The profit was largely in line with a 555 billion won Refinitiv SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate.

Revenue likely fell 22% from the same period a year earlier to 60 trillion won, Samsung (KS:) said in the statement.

The tech giant is due to release detailed earnings later this month.

($1 = 1,307.6700 won)

Source link