Samsung reports low profits for quarter
Published 01/08/2014 | 09:45
Samsung has reported lower-than-expected profit for the second quarter and says it is uncertain if its handset business takings would improve during the current period.
The South Korean electronics giant's net income during the April-June quarter dropped 20% to 6.3 trillon won (£3.6bn), compared with 7.8 trillion won a year earlier. That was the lowest since the second quarter of 2012. Analysts surveyed by FactSet forecast 6.5 trillion won income.
Sales fell 9% to 52.4 trillion won while operating profit sank 25% to 7.2 trillion, in line with Samsung's guidance earlier this month.
Samsung had warned that the second quarter would be the worst in two years as its handset business halted growth. Robert Yi, head of investor relations, said Samsung incurred higher marketing expenses as competition increased in the mid-to low-end smartphones and because it tried to sell old products ahead of new product launches in the autumn.