ajunews Wednesday,28 February 2024

Samsung Electronics records operating profit of $459 mln in 2Q 2023, down 95.74 percent on-year

By Park Sae-jin Posted : July 7, 2023, 14:36 Updated : July 7, 2023, 14:36
Courtesy of Samsung Electronics
[Courtesy of Samsung Electronics]

SEOUL -- Due to global sluggish global smartphone and semiconductor market, Samsung Electronics saw its sales and operating profit decrease in the second quarter of 2023. According to the data released by the Semiconductor Industry Association, global semiconductor sales totaled $40.7 billion in May 2023, up 1.7 percent on-month but 21.1 percent less than the $51.7 billion recorded in May 2022.
 
The company announced its preliminary sales report on July 7 and said that Samsung recorded sales of 60 trillion won ($45.8 billion) and operating profit of 600 billion won in 2Q 2023. Sales and operating profit decreased by 22.28 percent and 95.74 percent compared to the same period last year, respectively. The company recorded an operating profit of 640.2 billion won in the first quarter.
 
Samsung recorded the lowest operating profit since the global financial crisis when the company's sales stood at 590 billion won in 1Q 2009. Although detailed performance by the division was not disclosed, securities analysts expect that Samsung Electronics may have incurred a deficit of around 3 to 4 trillion won in its Device Solutions (DS) division, which is responsible for the semiconductor business.
 
However, experts predict that sales of semiconductors will rebound in the latter half of 2023 after the market is affected by reduced production of chips. Samsung announced in April that the company will reduce the production of semiconductors by large numbers in a bid to efficiently manage its inventory and improve operational performance.

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