Samsung released its first-quarter earnings guidance, which shows a bleaker result than we’ve seen in over a decade. Sales will be 62-64 trillion won (approximately $48 billion), down 10% from the previous quarter and down almost 20% on an annual basis.
Operating profit was around KRW 0.5-0.7 trillion ($455 million), down six times from the previous quarter and down 95% from KRW 14.12 trillion in the same period last year.
| (all units won/US dollar) |
Q1 2023 Financial guidance |
Q4 2022 | QoQ QoQ | Q1 2022 | year-on-year |
| sale | 63 trillion/ 48 billion |
70.46 trillion/ 53.48 billion |
-10.6% | 77.78 trillion / 59 billion |
-19% |
| Operating income | 0.6 trillion/ 455 million |
4.31 trillion/ 3.27 billion |
-86.1% | 14.12 trillion/ 10.7 billion |
-95.6% |
Samsung has revealed that it will significantly reduce production as demand for its memory chips continues to slump. The sector is the main reason for his worst profit results since 2009, the South Korean company says.
The Samsung Group is South Korea’s largest family-owned conglomerate, known locally as a conglomerate. The company accounts for more than 20% of the country’s domestic GDP, deepening the country’s economic woes.
This is the second consecutive quarter of significant decline, as profits fell by nearly 70% in Q4 2022. At the time, Samsung was blaming war and inflation in Ukraine, but it’s clear that the company’s golden run for memory chips is over and it needs to look elsewhere to restore profitability. .
Source | Via
