January 08, 2025 (MLN): South Korea's Samsung Electronics said Wednesday it expected fourth-quarter profits to fall sharply from the previous quarter, as APP reported.
The company also projected missing forecasts as it struggled to meet robust demand for chips used in artificial intelligence servers.
The announcement comes after the world's largest memory chip maker issued a rare apology in October.
It acknowledged facing a "crisis" and raised concerns about its "fundamental technological competitiveness and the future of the company."
It said in a regulatory filing that October-December operating profits were expected to come in at 6.5 trillion won ($4.5 billion), up 130.5% from a year earlier.
But that is down nearly 30% from 9.18tr won in the previous three months and 16% below the average estimate, according to the Yonhap news agency, which cited its own financial data firm.
Sales were seen increasing 10.7% on year to approximately 75tr won, which was also lower than the previous quarter.
"In light of the preliminary fourth-quarter 2024 results significantly falling short of market expectations, we aim to mitigate confusion among the market and investors until the final results are announced," Samsung's management said in an explanation page.
It noted that Samsung's Device Solutions division, which oversees memory and foundry business units, among others, "reported declines in sales and profits due to worsening market conditions, particularly for IT-related products".
"Despite achieving record-high quarterly revenue in the fourth quarter, driven by strong sales of high-capacity products, weak demand for conventional PC and mobile products weighed on overall performance," it said.
