Samsung said in a statement that it expects its operating profit in the second quarter to fall 55.9% compared to the same period last year

 

Samsung expects 56% drop in operating profit in Q2

Samsung Electronics said in a statement Tuesday that it expects its operating profit in the second quarter to decline 55.9% compared to the same period last year due to a slowdown in its chip business and the fallout from US tariffs, marking a lower-than-market operating profit.

Samsung Electronics, one of the world's largest memory chip makers, estimated an operating profit of 4.59 trillion won (about $3.4 billion) for the quarter ending in June, a sharp decline from 10.44 trillion won in the same period last year, according to the company's earnings guidance.

The London Stock Exchange Group had forecast an operating profit of 6.2 trillion won.

Compared to the first quarter of this year, operating profit declined 31.2% to 6.69 trillion won. Net operating profit fell 23.4 percent from the median estimate, according to a survey by Yonhap Infomax, a financial data company affiliated with the official Yonhap news agency.

Revenue fell 0.1 percent to 74 trillion won. Net profit data was not available.

In a separate statement, the company attributed the sharp decline in detailed profit to inventory replenishment and the impact of the US ban on exports of advanced artificial intelligence chips to China.

The company will release its final earnings report later this month.