Samsung’s profit in the third quarter fell by 78% – Kommersant
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Today, October 11, the South Korean corporation Samsung Electronics published preliminary third quarter revenue and profit data. The company’s revenue decreased by almost 13%, amounting to 67 trillion won ($50 billion). Operating profit fell by 78% to 2.4 trillion won ($1.8 billion).
Samsung’s revenue was 11.5% higher than in the second quarter, and operating profit was more than triple the previous quarter. The company’s shares rose by 3% after the publication of the report, as the day before analysts expected a more significant drop in profits – 80%.
Samsung’s results over the past few quarters are primarily due to reduced demand for memory chips, which has resulted in the company accumulating significant inventories. Back in April Samsung reported about plans to significantly reduce the production of memory chips. Analysts say prices for memory chips likely bottomed out in the third quarter and will now gradually begin to recover, and prices for some types of such chips have already begun to rise. “Although the situation in the chip business is not very good, the decline in memory chip prices is softening and further decline will be limited,” said Daol Investment & Securities analyst Ko Yong Min.
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