Samsung Electronics (KRX:005930) said it expects to report a drop of about 96% in its second-quarter operating profit as the ongoing oversaturation of the chip market cuts deep into its earnings.
The South Korean manufacturer of electronic devices including semiconductors and memory chips said it expects to report an operating profit of ₩600 billion (US$459 million) down from ₩14.1 trillion (US $10.8 billion) in the year-ago quarter.
This would mark the company’s lowest profit since it reported ₩590 million in the first quarter of 2009.
It also expects to report sales of ₩60 trillion (US$45.9 billion) down about 22% from ₩77.2 trillion (US$59 billion) in the comparable period last year.
Samsung Electronics (KRX:005930) will report its full second-quarter results on July 27.
Following the release of its updated guidance, the company's South Korean listed shares closed Friday down 2.4%.
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