Samsung says Q1 earnings will fall short of expectations
- 5 years ago
삼성전자 “1분기 실적, 시장 기대수준 하회 예상”... 어닝쇼크 공식화
Samsung Electronics has taken the rare step of announcing that it expects to see much weaker earnings for the first quarter.
The firm has never made such an announcement ahead of earnings reports.
Lee Min-sun has the details. South Korean tech giant Samsung Electronics says its profits in the first quarter will likely be far below market expectations.
The company wrote in the public note to investors that it's because of falling prices of displays and memory chips.
Samsung usually releases estimated revenue and operating profits a few days after each quarter ends
“The last year's first quarter number was 11 trillion won plus. Most likely first quarter this year, we are coming in at a low 5 trillion. That's more than a 50 percent decline.”
The company attributed the falling price of display to slowing sales of LCD panels amid an increased supply from Chinese companies, who've expanded their capacity. Samsung also pointed at weaker demand for flexible OLED panels from major clients.
As for memory chips, the company noted that overall demand fell because of seasonal factors.
But market watchers think these tough times for Samsung won't last long.
“The S10 sales seem to be quite picking up and foldable phones that will be launching in April are receiving quite good reviews. So all that said, the possibility of earnings bottoming out in the second quarter and most likely on third-quarter earning will be picking up.”
Meanwhile, Samsung pledged to improve cost competitiveness through efficient resource management as well as to strengthen core competencies such as strategic R&D for sustainable growth in the future.
Lee Min-sun, Arirang News.
Samsung Electronics has taken the rare step of announcing that it expects to see much weaker earnings for the first quarter.
The firm has never made such an announcement ahead of earnings reports.
Lee Min-sun has the details. South Korean tech giant Samsung Electronics says its profits in the first quarter will likely be far below market expectations.
The company wrote in the public note to investors that it's because of falling prices of displays and memory chips.
Samsung usually releases estimated revenue and operating profits a few days after each quarter ends
“The last year's first quarter number was 11 trillion won plus. Most likely first quarter this year, we are coming in at a low 5 trillion. That's more than a 50 percent decline.”
The company attributed the falling price of display to slowing sales of LCD panels amid an increased supply from Chinese companies, who've expanded their capacity. Samsung also pointed at weaker demand for flexible OLED panels from major clients.
As for memory chips, the company noted that overall demand fell because of seasonal factors.
But market watchers think these tough times for Samsung won't last long.
“The S10 sales seem to be quite picking up and foldable phones that will be launching in April are receiving quite good reviews. So all that said, the possibility of earnings bottoming out in the second quarter and most likely on third-quarter earning will be picking up.”
Meanwhile, Samsung pledged to improve cost competitiveness through efficient resource management as well as to strengthen core competencies such as strategic R&D for sustainable growth in the future.
Lee Min-sun, Arirang News.