Samsung Electronics anticipates a more than 50% decline in second quarter operating profits, forecasting a drop to 4.6 trillion won ($3.3 billion). This is a 56% decrease from the previous year and 31% from the prior quarter. Sales are expected to reach 74 trillion won, showing a minimal year-on-year decline of 0.1% and a more substantial decline of 6.5% from the previous quarter. The profit drop is attributed to U.S. restrictions on AI chips affecting the company's foundry business. Samsung expects improvements in the second half of the year as demand recovers.
Samsung Electronics expects its second quarter operating profits to fall by more than half, predicting a drop to 4.6 trillion won (approximately $3.3 billion), down 56% year-on-year.
Sales are estimated at 74 trillion won, reflecting a slight decline of 0.1% year-on-year and a more significant drop of 6.5% from the previous quarter.
The decline in profits is primarily due to issues in the foundry business and U.S. restrictions impacting advanced AI chip sales to China.
Samsung expects operating losses will reduce in the second half of the year as demand gradually recovers, improving utilization in its factories.
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