Samsung Electronics Q1 OP projected to fall nearly 96% y/y, LG Electronics' Q1 OP to surpass...

Samsung Electronics Q1 OP projected to fall nearly 96% y/y, LG Electronics' Q1 OP to surpass Samsung's for the first time 삼성전자 1분기 영업이익 작년 동기 대비 95.8%↓ LG전자 1분기 영업익 삼성전자 첫 추월 Samsung Electronics is likely to witness an earnings shock for the first quarter of this year hit by weaker demand for semiconductors. Meanwhile, the operating profit of LG Electronics is projected to top that of Samsung, for the very first time. Lee Soo-jin has the latest. Samsung Electronics is expected to post an "earnings shock" for the January to March period amid the continued sluggish global chip demand. The company disclosed on Friday an estimated consolidated operating profit for the first quarter of some 600 billion won or around 455 million U.S. dollars. That's a decline of nearly 96 percent from the previous year. Sales came to around 63 trillion won around 48 billion dollars for the same period, plunging almost 20 percent on-year. This marks the first time in 14 years that the tech giant's operating profit fell below 1 trillion won, or around 760 million dollars. Analysts linked the sharp decline to plunging demand for semiconductors since the end of last year, resulting in lower prices in the chip market. They also expect the semiconductor division, which makes up 60 to 70 percent of Samsung's operating profit, to post a deficit of around 4 trillion won as its chip inventory continues to swell. Samsung responded to the ongoing sluggish demand for IT products by saying it will make adjustments to chip production. This is the first time the company has officially announced its intention to cut production, although, exact details have not been revealed. The tech giant did say, however, that it will continue to increase investment in infrastructure as well as research and investment. Meanwhile, LG Electronics' operating profit has surpassed that of Samsung Electronics for the first time. LG Electronics projected an operating profit of 1-point-5 trillion won, compared to Samsung's 600 billion won. Its operating profit declined almost 23 percent on-year, but this was largely due to the one-off revenue generated from patents during the first quarter last year. Sales fell only 2-point-6 percent to 20-point-4 trillion won, its second-highest first quarter sales. While both operating profit and sales saw an on-year decline, LG said this was a relatively small drop considering the downturn in the global economy. Analysts said the company's home appliance division benefited from a decline in the costs of logistics and raw materials compared to during the pandemic. Lee Soo-jin, Arirang News. #Samsung_Electronics #LG_Electronics #영업_이익 #1분기 #Arirang_News 📣 Facebook :   / arirangtvnews   📣 Twitter :   / arirangtvnews   📣 Homepage : https://v2.arirang.com/ 2023-04-07, 21:00 (KST)