Seoul, July 8
Samsung Electronics on Tuesday estimated its second-quarter operating profit plunged 55.9 per cent from a year earlier due to sluggish chip business and the fallout from US trade policies, missing market expectations.
The world's biggest maker of memory chips expected an operating profit of 4.59 trillion won ($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.
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.
For the upcoming quarter, Samsung Electronics expects a rebound in demand and sales of premium high bandwidth memory (HBM) chips, despite reports that its HBM products failed to pass quality tests by U.S. artificial intelligence (AI) chip leader Nvidia Corp.