Samsung Announced the First Decrease in Profits in Two Years
Samsung Electronics, a South Korean company, divulged a forecast of financial results for the fourth quarter that distressed investors. The Company’s operating profit fell down by 29%.
On January 8, Samsung Electronics released a profit statement in the fourth quarter of 2018. According to preliminary results, operating profit in the last quarter decreased by 29% to a value of about 10.8 trillion KRW ($9.67 billion), while averaged forecasts suggested a less significant reduction to 13.2 trillion KRW.
The reasons for the drop of the Company’s indicators are the low demand for Samsung chips and high competition in the Smartphone market. The Company’s analysts also expect the drop in profits in the first quarter of 2019.
In 2018, Samsung shares lost 24% against the Chinese-American trade war.
The Company also expects the drop in revenue by 11%, down to 59 trillion KRW. Samsung will release more detailed financial results and explanations by the end of January.
- Ranking of the Most Profitable Companies in 2018
- Dow Jones and Nasdaq Fell Down, but S&P 500 Is Quietly Steady
- US Stock Indexes Showed the Worst Year Start for 18 Last Years
- Binance Will Launch Its Own Blockchain to Create Cryptocurrencies
- Asian indices break down after arresting the director of Huawei