Samsung forecasts smaller than expected profit gains in 2Q

SEOUL, Korea, Republic Of – Samsung Electronics says its second-quarter operating profit rose 5 per cent over a year earlier.

In its earnings preview Friday, the South Korean company estimated its April-to-June operating profit at 14.8 trillion won ($13.2 billion), missing expectations.

That represents a 5 per cent fall from the previous quarter when its operating profit was at an all-time high. It means an end to Samsung’s streak of record-breaking earnings fueled by the lucrative memory chip business.

Sales fell 5 per cent over a year earlier to 58 trillion won ($51.7 billion).

Analysts have recently lowered their views on Samsung, the world’s largest smartphone maker, citing weak smartphone sales. They said Samsung sold fewer-than-expected Galaxy S9 flagship smartphones.

The company is due to give its net profit and breakdown figures among its business divisions later this month.