Samsung Electronics says second-quarter operating profit likely 56% down, beats expectations

FILE PHOTO: The logo of Samsung Electronics is seen at its office building in Seoul, South Korea, March 23, 2018. REUTERS/Kim Hong-Ji/File Photo

SEOUL (Reuters) – South Korean tech giant Samsung Electronics Co Ltd (005930.KS) on Friday said its second-quarter operating profit likely fell 56% from a year earlier, beating analyst estimates.

A drop in memory chip shipments to embattled Chinese telecom equipment maker Huawei Technologies exacerbated a supply glut and put downward pressure on chip prices, analysts say.

April-June operating profit was likely 6.5 trillion won ($5.6 billion), Samsung in a regulatory filing ahead of the release of its detailed earnings figures in late July.

That compared with the 6 trillion won Refinitiv SmartEstimate that gives a greater weighting to top-rated analysts, according to Refinitiv data.

One-off gains in the display division, which supplies display panels to Apple Inc (AAPL.O), were reflected in the operating profit, the company said without elaborating.

Samsung received reimbursement worth about 800 billion won for display panels sold to Apple as the U.S. smartphone maker missed a sales target the parties had agreed on, analysts said.

The world’s top maker of memory chips and smartphones has become collateral damage in a Sino-U.S. trade war, and may take a hit from recent Japanese curbs on exports to South Korea of high-tech materials.

Revenue likely fell 4.2 % from a year earlier to 56 trillion won, the firm said.

Reporting by Ju-min Park and Heekyong Yang; Editing by Stephen Coates


READ  McDonald’s is launching millionaire’s shortbread frappes and iced lattes – and they’re cheaper than Starbucks


Please enter your comment!
Please enter your name here