Samsung Electronics estimates lower-than-expected Q3 earnings

By Candice Kim Posted : October 8, 2024, 15:25 Updated : October 8, 2024, 15:25
This photo shows the Samsung Electronics headquarters in Seoul. AJP
SEOUL, October 8 (AJP) - Samsung Electronics Co. said Tuesday that its third-quarter operating profit likely surged 274.5 percent year-on-year to 9.1 trillion won (US$6.7 billion), which fell short of market expectations and prompted the head of its chip business to issue a rare apology for the poor performance.

In a regulatory filing, the tech giant estimated its July-September revenue reached a record high of 79 trillion won, up 17.21 percent from a year earlier, surpassing the previous record set in the first quarter of 2022.

Compared to the previous quarter, sales increased by 6.66 percent, while operating profit decreased by 12.84 percent.

The figures fell short of market expectations. Financial data provider FnGuide had projected sales of 80.9 trillion won and an operating profit of 10.77 trillion won.

The poor performance was attributed to slowing DRAM demand amid weak smartphone and PC sales. 

The company cited inventory adjustments by some mobile customers and increased supply of legacy products from Chinese memory manufacturers as factors affecting its memory business. 

The company also noted delays in the commercialization of its HBM3E (high bandwidth memory) for major customers. 

In response to the results, Jun Young-hyun, head of Samsung's Device Solutions division, issued a statement acknowledging the disappointing performance.

"I am sorry for causing concern about our fundamental technological competitiveness and the company's future due to performance that fell short of market expectations," he said.

"We will definitely turn this grave situation we are facing into an opportunity for a rebound," Jun added.

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