South Korean tech giant Samsung recorded Thursday a 31.4% drop in operating profit, its first year-on-year decline in almost three years, as the global economic downturn impacted demand for electronic devices and memory chips.
Operating profit for the quarter ending September 30 was at $7.7 billion (10.85 trillion won), down from the $11.2 billion (15.82 trillion won) in the same period last year, the company said in a statement.
Revenue rose during the quarter to $54.2 billion (76.78 trillion won) compared to $52.2 billion (73.98 trillion won) in the previous corresponding period. The world’s largest memory chipmaker said semiconductor revenue for the third quarter was at $16.3 billion (23.02 trillion won), down from the $18.7 billion (26.41 trillion won) in the year-ago period.
The company’s earnings in its memory business declined as inventory adjustments of customers exceeded market expectations and demand for consumer products continued to weaken.
Earnings for the DRAM and NAND memory chips declined compared to the previous quarter. Buyers of memory chips like smartphone and computer companies have halted purchases and turned to their own inventory, which negatively impacted chipmakers.
Profits of Samsung’s system LSI business were down due to weak demand for mobile phones and televisions, while the foundry business posted a record quarterly revenue on improving yields in advanced nodes.
