Samsung Electronics released its quarterly guidance ahead of the release of its detailed fiscal report, and for the second consecutive quarter, the Korean company expects sharp declines in profits. Consolidated data shows an operating profit of KRW 0.5-0.7 billion (US$455 million), which is more than 95 percent lower than the same period last year.
Sales figures also declined, both quarterly and yearly. Estimates are between KRW 59 and 61 trillion in total revenue, or about $46 billion.
| (all units in KRW/USD) |
Q2 2023 Earnings guide |
Q1 2023 | Quarterly change | Q2 2022 | Change year on year |
| Sales | 60 trillion / 46 billion |
63.75 trillion / 48.83 billion |
-5% | 77.2 trillion / 59.13 billion |
-22% |
| Operational profit | 0.6 trillion / 455 million |
0.64 trillion / 490 million |
-6.25% | 14.1 trillion / 10.8 billion |
-95.7% |
The last time Samsung had such low profits was in the first quarter of 2009, when the number stood at KRW 590 billion. The Korean company will publish the full results on July 27 and then we will have the full picture.
We already know the giant is expected to scale back production of memory chips due to sluggish demand and geopolitical uncertainties. War in Ukraine is no longer a viable excuse, meaning memory chips are no longer the golden goose and Samsung needs to diversify its strategy to keep the cash flowing.
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