Samsung Electronics flags lowest quarterly profit in 8 years on demand slump

Samsung Electronics reported connected Friday a apt 69% plunge successful December-quarter operating nett to an eight-year low, arsenic a planetary economical downturn saps request for physics devices and clouds the memory-chip manufacture outlook.

The world's largest representation chip, smartphone and TV shaper estimated its nett slumped to 4.3 trillion won ($3.37 billion) successful October-December from 13.87 trillion won a twelvemonth earlier.

It was Samsung's smallest quarterly nett since the 3rd 4th of 2014 and fell abbreviated of a 5.9 trillion won Refinitiv SmartEstimate, which is weighted toward forecasts from analysts who are much consistently accurate.

"For the representation business, the diminution successful fourth-quarter request was greater than expected arsenic customers adjusted inventories successful their effort to further tighten finances, spurred by concerns implicit deteriorating user sentiment caused by continued precocious planetary involvement rates and anemic economical outlooks," Samsung said successful a statement.

Revenue apt fell 9% from the aforesaid play a twelvemonth earlier to 70 trillion won, Samsung said successful the abbreviated preliminary net release.

Samsung said that representation spot prices besides declined passim the 4th owed to accrued inventory astatine representation suppliers, starring to a greater-than-expected driblet successful spot prices.

Its mobile concern nett declined successful the 4th fourth arsenic smartphone income and gross decreased owed to anemic request resulting from prolonged macroeconomic issues, Samsung added.

Asia's fourth-biggest institution by marketplace worth is owed to merchandise elaborate net aboriginal this month.