Institutions, Samsung Electronics DRAM business will turn losses into profits in Q4, and DS department‘s losses will narrow

Source: Flash memory market

     According to South Korean media reports, securities firms predict that Samsung Electronics‘ sales in the fourth quarter will reach 69.6637 trillion Korean won (approximately 53.3 billion US dollars), and operating profit will reach 3.565 trillion Korean won (approximately 2.73 billion US dollars). In the third quarter, the company‘s operating revenue will be 67.40 trillion Korean won (approximately 51.9 billion US dollars), and operating profit will be 2.43 trillion Korean won (approximately 1.87 billion US dollars).

    Throughout the year, Samsung Electronics is expected to achieve a revenue of KRW 260.84 trillion (approximately USD 200.88 billion), a decrease of 13.7% compared to KRW 302.23 trillion (approximately USD 232.75 billion) last year; The annual operating profit was 7.3443 trillion won (approximately 5.66 billion US dollars), a decrease of 83% from the previous year‘s 4.33766 trillion won (approximately 33.4 billion US dollars). This is the first time Samsung Electronics has failed to exceed 10 trillion Korean won in annual operating profit since hitting its lowest performance record due to the financial crisis in 2008.

    The main reason for the decline in Samsung Electronics performance is the deficit in the DS (Device Solutions) department responsible for the semiconductor business. The DS department has accumulated operating losses of over 12 trillion Korean won (approximately 9.24 billion US dollars) in the first three quarters, including a loss of 4.58 trillion Korean won (approximately 3.53 billion US dollars) in the first quarter, 4.36 trillion Korean won (approximately 3.36 billion US dollars) in the second quarter, and 3.75 trillion Korean won (approximately 2.89 billion US dollars) in the third quarter.

    Securities analysts predict that due to factory production cuts in the first half of this year, prices will rebound, and Samsung‘s DS division‘s operating loss in the fourth quarter will decrease to 971.2 billion Korean won (approximately 750 million US dollars), indicating that the semiconductor industry is improving. Especially for DRAM, it is expected to turn losses into profits in the fourth quarter. The institution predicts that Samsung Electronics‘ fourth quarter DRAM operating profit will be 734.9 billion Korean won (approximately 570 million US dollars).