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Samsung Electronics says fourth-quarter profit likely fell 29 percent; China demand weak

Reuters  |  SEOUL 

(Reuters) - South Korea's Electronics Co Ltd <005930.KS> on Tuesday estimated a decline in quarterly operating profit for the first time in two years, as a slowing Chinese economy erodes demand for its chips and handsets.

Weaker earnings at the world's biggest maker of and adds to worries for investors already on edge after last week lowered its quarterly sales forecast, in a rare move, citing poor sales in

Samsung, in a regulatory filing, estimated profit at 10.8 trillion won ($9.67 billion) for October-December last year, down 29 percent from the same period a year earlier. That compared with the 13.2 trillion won average of 26 estimates in a I/B/E/S Refinitiv poll.

It also estimated a 11 percent on-year revenue decline at 59 trillion won.

will disclose detailed earnings later in January.

Analysts expect Samsung's profit to decline through 2019 as weakness in persists, Refinitiv data showed.

Prices for DRAM chips, which provide devices with temporary workspaces and allow them to multi-task, declined 10 percent in the fourth quarter, according to industry tracker DRAMeXchange.

Prices of NAND chips, which hold data permanently, slipped 15 percent.

DRAMeXchange anticipates memory chip prices to fall 10 percent on an average in the first quarter of 2019.

(For an interactive graphic on memory chip prices, click https://tmsnrt.rs/2GYDer8)

($1 = 1,116.4000 won)

(Reporting by Heekyong Yang and Ju-min Park; Editing by Christopher Cushing)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 08 2019. 05:22 IST
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