Samsung issues weaker 2Q profit guidance
07 Jul 2015
Samsung Electronics Co Ltd today issued guidance for weaker-than-expected second-quarter earnings, as a supply shortage hit its latest smartphone launch and tepid demand from key markets undercut sales.
According to the guidance Samsung, while on a gradual recovery path, would struggle to grow at the rate it recorded at the turn of the decade as smartphone competition intensified amid softening of demand in China and Europe.
Operating profit for the second quarter would likely drop 4 per cent from a year earlier to 6.9 trillion won ($6.13 billion), Samsung according to the filing, its best profit in four quarters but also the seventh straight period of annual decline.
"It doesn't matter how competitive you are if overall demand is weak," HMC Investment analyst Greg Roh said, Reuters reported. "Third-quarter earnings will likely be similar to the second quarter."