Samsung Electronics' Q3 Operating Profit W9.1 Trillion...Jeon Young-hyun, Vice Chairman, 'Apologies Unusual'

Samsung Electronics' Q3 Operating Profit 9.1 Trillion...274.5% ↑"

" Q3 Revenue of KRW 79 trillion in 1 Year…Quarterly record breaking"

It's the biggest sales...Operating profit below market expectations

[Anchor]
Samsung Electronics, Korea's No. 1 market cap and Samsung Electronics Co., whose stock price fell to the 50,000 won mark yesterday, announced its preliminary business performance in the third quarter.

While operating profit did not meet market expectations, Vice Chairman Jeon Young-hyun even issued an unusual apology. Reporter Park Kiwan!

[Reporter]
Yes, I'm Park Ki-wan.

[Anchor]
Please tell me the performance news in detail.

[Reporter]
Yes, Samsung Electronics tentatively announced that it earned 9.1 trillion won in operating profit in the third quarter through the electronic disclosure system.

It is 274.49% and nearly four times higher than in the third quarter of last year.

Sales rose 17.21% in a year to 79 trillion won, breaking the record for the first quarter of 2022, which was the largest in two and a half years.

Although the company reported higher earnings than last year, when it suffered a recession in the semiconductor industry, it is said to have been lower than the downwardly revised market expectations.

Due to the increase in demand for memory semiconductors following the AI craze until August, operating profit of 13 trillion won in the third quarter was expected in the stock market.

However, it cut its forecast by more than 20%, citing lower demand for smartphones and PCs and higher inventory of non-memory semiconductors.

As a result, Samsung Electronics' stock price fell for five consecutive trading days last week, and yesterday (7th) fell to the 50,000 won level.

However, Samsung Electronics' stock price has not been shaken much by the earnings shock announced just before the opening.

The transaction is maintained at around KRW 60,500, down 1% from the previous trading day, and it is guarding the KRW 60,000 range.

[Anchor]
Specifically, I'm curious about the performance by sector.

Has the relevant explanation been made?

[Reporter]
Yes, Samsung Electronics released a separate explanatory data, saying that its provisional performance achieved its maximum sales, but it is expected to confuse investors because it fell short of market expectations.

The memory business explained why it was affected by inventory adjustments from some mobile customers and increased supply of general-purpose products from Chinese memory companies, despite strong demand for servers and HBM.

In addition, earnings fell due to one-time costs and foreign exchange effects. In the case of HBM3E, it said that the commercialization of major customers' musk was delayed compared to expectations.

It then said strong sales of flagship smartphones in the mobile sector and displays have improved in part due to the effect of launching new products from major customers.

In the meantime, Vice Chairman Jeon Young-hyun, a reliever of Samsung Electronics' semiconductor, also announced a rare statement to customers, investors, and executives.

Vice Chairman Jeon apologized for worrying about the future of the company with performance that did not meet market expectations,

All the responsibility lies with the management leading the business, and the management will take the lead in creating an opportunity to make another leap forward to overcome the crisis.

At the same time, he suggested restoring the fundamental competitiveness of technology, thorough future preparation, and rebuilding the organizational culture of communication as a way to overcome the crisis.

In particular, Vice Chairman Jeon said that new technology and perfect quality competitiveness are the only way for Samsung Electronics to leap forward again, adding that it will rearm itself with a spirit of challenge that runs toward higher goals, not with the mindset of 守 to protect what it has.

I'm Park Kiwan of YTN.