[Featured Stock] Samsung Electronics Dips Over 1% Amid Q3 Operating Profit Shock

[Image source=Yonhap News]

[Asia Economy Reporter Myung-hwan Lee] Samsung Electronics is showing a decline of over 1% in the early trading hours on the 7th. This appears to be due to the company’s announcement that its third-quarter operating profit decreased by more than 31% compared to last year.

As of 9:07 a.m. on the same day, Samsung Electronics was trading at 55,300 KRW, down 1.78% (1,000 KRW) from the previous trading day.

Samsung Electronics disclosed on the day that its preliminary consolidated results for the third quarter of this year recorded sales of 76 trillion KRW and an operating profit of 10.8 trillion KRW. Compared to the same period last year, sales increased by 2.73%, but operating profit decreased by 31.73%.

Samsung Electronics’ third-quarter results also fell short of market expectations. According to financial information provider FnGuide, the market forecast for Samsung Electronics’ third-quarter performance this year was sales of 78.6 trillion KRW and an operating profit of 11.75 trillion KRW.

The poor third-quarter operating profit of Samsung Electronics is interpreted to be due to the burden of raw material and logistics costs caused by the Russia-Ukraine war and inflation. In addition, the strong dollar, intensified competition in the semiconductor market, and a sharp drop in demand amid uncertain global business conditions also appear to have had an impact.