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SEOUL, July 8 (Yonhap) — Samsung Electronics Co. on Tuesday estimated its second-quarter operating profit plunged 55.9 percent from a year earlier due to sluggish chip business and the fallout from U.S. tariffs, missing market expectations.
The world’s biggest maker of memory chips expected an operating profit of 4.59 trillion won (US$3.4 billion) for the quarter ending in June, sharply down from 10.44 trillion won a year earlier, according to an earnings guidance released by Samsung Electronics.
From the previous quarter, operating profit sank 31.2 percent from 6.69 trillion won.
The operating profit was 23.4 percent lower than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
Revenue edged down 0.1 percent to 74 trillion won. The data for net earnings was not available.
In a separate release, Samsung Electronics attributed the sharp on-quarter decline in profit to inventory replenishments and the impact of the U.S. ban on exports of advanced AI chips to China.
The company will release its final earnings report later in the month.
The company flag of Samsung Electronics Co. is seen at its office building in southern Seoul, in this undated file photo. (Yonhap)
brk@yna.co.kr
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