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Samsung expects profits to decline more than 30% from 1Q of 2014

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Investing.com -

Investing.com -- While Samsung (LONDON:0593xq) Electronics Co. expects that operating profit in the first quarter exceeded previous market forecasts, the South Korean tech giant said on Tuesday that its projections mark a 31% decline from earnings at this period last year.

Samsung expects it will report quarterly profits of approximately 5.9 trillion won ($5.44 billion) when it releases its first quarter earnings for the first three months of the year later in April. The Korean company posted earnings of roughly 5.3 trillion won during the fourth quarter of 2014. In addition, Samsung expects it will report sales of 47 trillion won for the period.

Samsung is optimistic that its much-anticipated launch of the Galaxy S6 and S6 edge later this week can boost its much maligned smartphone division. In recent quarters, the division has struggled to compete with its main rival Apple (NASDAQ:AAPL).

The two models have been projected to sell up to 50 million units, according to some estimates, which would set a record for the company. Samsung reportedly has already received approximately 20 million pre-orders for the two devices.

The South Korean multinational conglomerate has also reportedly secured a deal to manufacture the chip for Apple's next iPhone, Bloomberg reported last week. Samsung will begin producing Apple A9 chips at a plant outside Yongin, South Korea, according to Bloomberg. Samsung reportedly lost another contract to manufacture a chip for Apple to Taiwan Semiconductor Manufacturing Co., another one of its chief rivals.

Shares of Samsung on the Korea Exchange remained relatively unchanged on Tuesday following the projections.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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