[3rd Report] Unable to Escape the 'Semiconductor Cold Wave'... Samsung Electronics Posts Operating Profit Decline for the First Time in 3 Years

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[Asia Economy Reporter Han Yeju] Samsung Electronics recorded a year-on-year decline in quarterly performance for the first time in about three years due to the semiconductor industry downturn.

Samsung Electronics announced on the 7th that its preliminary consolidated results for the third quarter of this year showed sales of 76 trillion won and operating profit of 10.8 trillion won.

Compared to the previous quarter, sales decreased by 1.55% and operating profit by 23.4%, while compared to the same quarter last year, sales increased by 2.73% and operating profit decreased by 31.73%.

After surpassing 70 trillion won in quarterly sales for the first time in the third quarter of last year, Samsung Electronics continued a record-high sales streak for three consecutive quarters until the first quarter of this year, but sales slightly decreased to 77.2 trillion won in the second quarter and further declined to 76 trillion won in the third quarter.

Operating profit recorded a year-on-year decline in quarterly performance for the first time in about three years since the fourth quarter of 2019.

This is attributed to the disappearance of the COVID-19 special demand, contraction in IT set demand due to high inflation and high interest rates, and sluggish performance in memory semiconductors, which had driven earnings.

Meanwhile, the preliminary results are estimated based on the Korean International Financial Reporting Standards (IFRS) and are provided to assist investors' convenience while the settlement has not yet been completed.