Samsung Expects Profit to Plummet 69% in 4th Quarter

From CNET: Samsung said Thursday that it expects its fourth-quarter operating profit to decline 69%, which would make for the company's lowest profit in eight years, as the global economic downturn continues to weigh on consumer demand for PCs and phones.

The Korea-based company on Thursday predicted that its operating profit for the three-month period ended Dec. 31 would come in at around 4.3 trillion won ($3.4 billion), a drop of 69% compared with the same time period last year, when it notched a record fourth-quarter profit. It also said it expects its revenue in the quarter to decrease 8.5% to 70 trillion won (455.1 billion).

The guidance represents Samsung's lowest quarterly profit since the third quarter of 2014, when it logged 4 trillion won.

"For the memory business, the decline in fourth-quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances, spurred by concerns over deteriorating consumer sentiment caused by continued high global interest rates and weak economic outlooks," Samsung said in a statement.

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