SEOUL: Samsung Electronics said Friday it expected its fourth-quarter operating profits to plunge 69 percent as the global downturn causes a sharp decline in demand for memory chips and smartphones. The South Korean tech giant said operating profits for the October-December period likely slumped to 4.3 trillion won ($3.4 billion), a stinging year-on-year drop from 13.87 trillion won. In a statement, Samsung said fourth-quarter profits were "well below current market expectations," blaming the performance on macroeconomic issues, spurred by central banks around the world raising interest rates. The widely expected fourth-quarter drop is the second consecutive margin squeeze for Samsung, which saw a 31.39 percent fall in operating profits in the third quarter year on year. But the global economy is now facing multiple challenges including soaring inflation, rising interest rates and a growing threat of a broad debt crisis.

Source: Manila Times January 06, 2023 22:15 UTC