Samsung Electronics Co. said Tuesday its operating profit plunged 28.7 percent in the fourth quarter compared with a year ago due to weak memory demand, falling far short of market expectations.
Operating profit came to 10.8 trillion won (US$9.66 billion) in the October-December period, the South Korean tech behemoth said in a regulatory filing. This is down 38.5 percent from 15.1 trillion won posted a quarter earlier.
The operating profit was the lowest since the first quarter of 2017.
Sales fell 10.6 percent on-year to 59 trillion won over the cited period, the company said.
The operating profit was far below market expectations of 13.6 trillion won, based on the survey conducted by Yonhap Infomax, the financial arm of Yonhap News Agency, on 23 South Korean brokerage houses.
Samsung did not announce the net profit for the fourth quarter, nor the performances of respective business divisions. The finalized earnings report will be announced later this month.
For 2018, the company expected the operating profit and sales to reach 58.9 trillion won and 243.5 trillion won, respectively, on the back of strong demand for memory chips in the global market. The sales estimate is the record-high annual figure.