Samsung expects profit decline as pandemic hits sales

SEOUL, SOUTH KOREA (AP) – Samsung Electronics Co said yesterday its operating profit for the first three months of 2020 rose 3.4 per cent from a year earlier driven by increasing demands for computer chips.

The South Korean technology giant said it reported an operating profit of KRW6.4 trillion (USD5.2 billion) for the January-March quarter. The company’s revenue rose 5.6 per cent from a year earlier to KRW55.3 trillion (USD45.4 billion).

Samsung, which has dual strength in parts and finished products, has seen the demand for chips used in computers and servers increase as broadening outbreaks have force more people around the world to work from home.

However, the company said its profit will likely decline in the April-June quarter with the pandemic pushing down the sales of mobile and household devices.

“Sales and profits of set products business, including smartphones and TVs, are expected to decline significantly as COVID-19 affects demand and leads to store and plant closures globally,” the company said in a news release.

People walk under advertisements of Samsung Electronics’ Galaxy S20 Ultra and Galaxy Z Flip smartphone in Seoul, South Korea. PHOTO: AP