Samsung Electronics Q1 operating profit down 0.15%
Samsung Electronics Co. on Tuesday estimated its first-quarter operating profit edged down 0.15 percent from a year earlier but exceeded market expectations on strong sales of its new flagship smartphones.
The world's biggest maker of memory chips expected an operating profit of 6.6 trillion won ($4.5 billion) for the quarter ending in March, according to an earnings guidance released by Samsung Electronics.
The operating profit was 33.5 percent higher than the average estimate of 4.9 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
Sales increased 9.8 percent to 79 trillion won. The data for net income was not available.
Experts noted the better-than-expected performance may be attributable to the popularity of the new Galaxy S25 smartphones, which went on sale in February.
Samsung Electronics did not release a detailed earnings report of its business divisions, but the market forecast that the company's semiconductor business earned around 1 trillion won in operating profit for the first quarter.
The company will release its final earnings report later in the month. (Yonhap)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
an hour ago
- Korea Herald
Samsung Electronics to adopt AI coding assistant to boost developer productivity
Samsung Electronics Co. said Sunday it will adopt an artificial intelligence coding assistant service called Cline next month to enhance productivity among its software development employees. In a recent internal notice, the company said it has launched a beta test of Cline for employees in the Device eXperience division, which includes its mobile, TV and home appliances businesses. Cline is an open-source AI tool that helps developers write, edit and test code using simple natural language commands like "create a login function." Unlike conventional coding assistants limited to basic tasks, Cline can handle more complex software development processes, significantly boosting productivity. Samsung plans to continue beta testing through the end of this month and aims to launch the official version as early as next month. As part of its transition into an AI-driven company, Samsung has also established a dedicated AI productivity innovation group within its DX division. The new group serves as a central control tower, overseeing the development of companywide AI infrastructure and systems while supporting the implementation of AI tools across business divisions. (Yonhap)
Korea Herald
3 days ago
- Korea Herald
Trump's chip subsidy renegotiation casts uncertainty over Samsung, SK hynix
The Trump administration is renegotiating subsidies pledged under the previous Biden administration's CHIPS Act, sparking concerns that South Korean chipmakers Samsung Electronics and SK hynix might see cuts in funding for their US investments. US Commerce Secretary Howard Lutnick told the Senate Appropriations Committee that some of the subsidy agreements reached during the Biden administration 'just seemed overly generous, and we've been able to renegotiate them,' according to Reuters. 'All the deals are getting better, and the only deals that are not getting done are deals that should have never been done in the first place,' Lutnick was quoted as saying. His remarks suggest that not all grants pledged under the CHIPS Act will be paid out as originally committed, leaving chipmakers who were counting on the funding for their large-scale US projects in doubt. From the campaign trail, US President Donald Trump repeatedly called for the repeal of the subsidies, arguing that imposing tariffs, instead of grants, would be more effective to lure chipmakers to set up manufacturing facilities in the US. During an address to a joint session of the US Congress in March, Trump said the CHIPS Act is a 'horrible thing' and called for its removal. In 2022, then-US President Joe Biden signed the CHIPS and Science Act, allocating $39 billion in subsidies and grants for semiconductor companies setting up manufacturing and research facility in the US. Among the beneficiaries were chip heavyweights including Taiwan's TSMC, Korea's Samsung and SK hynix, as well as US-based Intel and Micron. Any delays or renegotiated terms for investment could deal a blow to Samsung and SK hynix, who had already pledged to invest tens of billions of dollars to build new advanced chip facilities. Depending on funding plans, they may be forced to reconsider their US investment strategies. Samsung is investing over $37 billion to build two new advanced fabrication plants and an R&D facility in Taylor, Texas. In return, the company has been awarded $4.74 billion in direct funding. SK hynix has secured $450 million in direct funding for a $3.87 million investment in building an advanced chip packaging plant and an R&D center in West Lafayette, Indiana. Regarding the future of their funding, a Samsung Electronics official said the company is monitoring the situation. An SK hynix official said there was nothing to comment on at this time.
Korea Herald
3 days ago
- Korea Herald
Seoul shares open higher on chip, heavy machinery gains
South Korean stocks opened higher Thursday, boosted by gains in semiconductors, heavy industry, and blue-chip shares. This upbeat start came despite a mixed finish on Wall Street overnight. The benchmark Korea Composite Stock Price Index (KOSPI) rose 23.05 points, or 0.83 percent, to 2,793.89 in early trading. The market built on Wednesday's 2.66 percent surge, which followed the inauguration of President Lee Jae-myung. Lee's election came after the ousting of former conservative President Yoon Suk Yeol, who was removed in December following a failed attempt to declare martial law. Investor sentiment in Seoul was more positive than in the US, where markets responded cautiously to economic data. The Institute for Supply Management reported its Services Purchasing Managers' Index fell to 49.9 in May, slipping below the 50-point mark for the first time since June 2023, suggesting a contraction. The Dow Jones Industrial Average fell 0.22 percent. The S&P 500 rose 0.32 percent, and the Nasdaq edged up 0.01 percent. Leading South Korean stocks advanced. Samsung Electronics gained 0.61 percent, and chip rival SK hynix jumped 3.56 percent. Hanwha Aerospace rose 3.67 percent, HD Hyundai Heavy Industries added 1.4 percent, and POSCO Holdings climbed 3.26 percent. In contrast, bio and battery stocks declined. Samsung Biologics dipped 0.19 percent, and LG Energy Solution slipped 0.17 percent. The Korean won strengthened against the US dollar, trading at 1,360.90 won as of 9:15 a.m., up 8.6 won from the previous close. (Yonhap)
