Seoul: Samsung Electronics Co. announced a significant decline in its second-quarter net income, with figures showing a nearly 50 percent drop, primarily due to a downturn in its semiconductor business. The company revealed that its net income for the April to June period was 5.11 trillion won (US$3.7 billion), down from 9.84 trillion won the previous year.
According to Yonhap News Agency, Samsung's earnings failed to meet market expectations, as analysts surveyed by Yonhap Infomax had anticipated a net profit of around 7.29 trillion won. The company's operating profit also saw a steep decline, plummeting by 55.2 percent year-on-year to 4.67 trillion won, although revenue rose slightly by 0.7 percent to 74.56 trillion won.
The semiconductor division, a significant part of Samsung's operations, reported an operating profit of 400 billion won, marking its lowest earnings since the fourth quarter of 2023, when it suffered a 2 trillion-won operating loss. Despite the weak profit margins, the division experienced an 11 percent increase in chip sales, reaching 27.9 trillion won, spurred by demand for premium server chips and an uptick in foundry orders.
Meanwhile, the company's DX division, which encompasses its mobile, TV, and home appliance sectors, experienced a 16 percent drop in sales to 43.6 trillion won. This decline is attributed to growing competitive pressures within the market, although the division still managed to secure an operating profit of 3.3 trillion won.