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Samsung Electronics posts 4.6 trillion won operating profit for Q2, down 56% on year

Published: 08 Jul. 2025, 08:56 Updated: 08 Jul. 2025, 08:59

Samsung Electronics flag at the company's Seocho building in southern Seoul on April 30 [NEWS1]

Samsung Electronics reported 4.6 trillion won ($3.34 billion) in operating profit for the second quarter of this year, down 55.94 percent from the same period last year.

The chipmaker posted its estimated second-quarter earnings report in a regulatory filing on Tuesday.

Samsung Electronics reported its operating profit was also down by 31.24 percent in comparison to the previous quarter of this year. It marks the lowest quarterly operating profit since the fourth quarter of 2023 when it recorded 2.82 trillion won, and the lowest second-quarter figure in two years since the second quarter of 2023 when it posted 668.5 billion won.

Revenue came in at 74 trillion won, down 0.09 percent from the April-to-June period last year and 6.49 percent from the previous quarter.

The result fell far short of market expectations due to continued sluggish performance in the Device Solutions (DS) division, which handles the company's semiconductor business, coupled with provisions for inventory valuation losses.

“The DS division posted a decline in profit from the previous quarter due to inventory provisions and the impact of U.S. sanctions on advanced AI chips for China,” Samsung Electronics said in its explanatory filing.

“The memory business saw a drop in earnings due to one-off costs such as inventory valuation provisions,” the company added, “but improved high bandwidth memory products are currently undergoing client evaluations and shipments.”

“In the non-memory business, sales restrictions and related inventory provisions stemming from U.S. sanctions on advanced AI chips for China, along with continued declines in line utilization rates, contributed to the poor performance. However, we expect a gradual recovery in demand in the second half of the year to improve utilization rates and reduce losses.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HYEON YE-SEUL [[email protected]]