Samsung Group is the biggest of the family-run conglomerates that hold significant power over South Korea’s economy, accounting for roughly one-fifth of gross domestic product (GDP). Samsung Electronics is one of its giant offspring and now, the favored son is facing its worst financial results in 15 years.
Samsung Electronics has provided financial guidance for this year’s first quarter and it expects its first-quarter operating profits to dive by more than 98%. Samsung did not specify by how much but it is scaling back supplies of memory chips and could have reverberations throughout the supply chain. South Korean chipmakers, such as Samsung and SK Hynix, have enjoyed years of record-breaking profits. That’s unlikely to happen for a while.
|Sales||$60.54 bn (77.78 tn won)||$54.96 bn (70.46 tn won)||$49.72 bn (63.75 tn won)||-17.86%|
|Operating profit||7.84%||4.87%||1.00%||-6.84 percentage points|