Samsung expects its operating profit to fall 60% due to chips

Samsung expects its operating profit to fall 60% due to chips

The technological giant Samsung Electronics expects its operating profit for the first quarter of the year to fall around 60% due to the drop in semiconductor prices and the reduced demand for screens.

In its profit forecast published today, the South Korean giant said that for January-March it expects an operating profit of 6.2 trillion won (4,860 million euros / 5,457 million dollars), which would be around 60.2 % interannual less.

The figure would also be around 42% less with respect to the operating profit of the last quarter of 2018.

In turn, the world's largest chip maker expects its turnover to add up to 52 trillion won (40,770 million euros / 45,768 million dollars), 14% less year-on-year and 12% less compared to the October-December quarter from last year.

As usual, Samsung did not break down its earnings forecast or include any net profit forecast.

The company had already warned its shareholders last week of the fall suffered by prices in the chip market (the branch of business that has brought record profits to the company in recent years) and the low global demand for displays .

Even so, the forecast published today is slightly below that previously estimated by South Korean analysts.

The company is expected to publish its results sheet for the first quarter of 2019 at the end of April.


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