Samsung Electronics (KRX: 005930) has announced its preliminary results for the first quarter of 2023, revealing significant revenue and operating profit declines.
The company reported revenue of KRW 63 trillion, down 19% YoY and 11% QoQ. Operating profit plunged 96% YoY and 86% QoQ to KRW 0.6 trillion.
These figures were below the consensus average of 18 securities firms, forecasting revenues of KRW 64.295 trillion and operating profit of KRW 701 billion.
The South Korean tech giant attributed the downturn primarily to sluggish IT demand and deteriorating performance in memory semiconductors, system semiconductors, and displays.
In response, Samsung is revising its memory production to a “meaningful level” and adjusting its short-term production plan downward.
However, the company remains optimistic about the medium to long-term demand and plans to invest in infrastructure and increase R&D investment.
If market expectations hold, Samsung will post a quarterly operating profit below KRW 1 trillion for the first time since Q1 2009, falling behind the significant players from South Korea, such as Hyundai Motor Company, KIA, and LG Electronics.
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