(LEAD) Samsung Electronics-Q2 earnings guidance

▲ People enter Samsung Electronics' Seocho office in Seoul on April 27, 2023. (Yonhap)

(LEAD) Samsung Electronics-Q2 earnings guidance

(LEAD) Samsung Electronics Q2 operating profit down nearly 96 pct on-year

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SEOUL, July 7 (Yonhap) -- Samsung Electronics Co. on Friday said its second-quarter operating profit likely plunged about 96 percent from a year earlier, as a chip oversupply and slow demand persisted.

The world's largest memory chip and smartphone maker estimated its April-June profit at 600 billion won (US$461.2 million), significantly down from the 14.1 trillion won it reported a year ago.

Sales likely fell 22.3 percent to 60 trillion won from the previous year's 77.2 trillion won, the company said in a regulatory filing. The data for net profit was not available.

The tech giant did not provide the results of each business division and will release its final earnings report late this month.

Samsung's Device Solutions division, which oversees its cash cow chip business, is forecast to have made losses of around 3-4 trillion won, according to analysts' estimates. If the estimate holds, it would mark the division's second consecutive quarter of losses.

During the January-March period, Samsung reported its first financial loss in 14 years as chip inventories bulged significantly amid tapering global demand. Prior to that, Samsung's chip business recorded losses in the first quarter of 2009.

The chipmaker has forecast the global chip market will shrink 6 percent on-year to $563 billion this year, due to a sharp drop in demand, and warned of difficult conditions continuing throughout the year.

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