Korean giants Samsung and LG reported earnings guidance for the second quarter of 2019. Both the companies have reported drop in profits for the quarter.
Samsung expects revenue of 56 trillion Korean won in Q2 2019, compared to 58.48 trillion Korean won a year ago, and an operating profit of 6.5 trillion Korean won, compared to 14.87 trillion Korean won YoY, which is down 56.2% YoY. This would be Samsung’s lowest profit since Q3 2016. Samsung blames weaker demand for memory chip and display panels.
LG Q2 preliminary earnings results
LG has also announced preliminary earnings results for the second quarter of 2019. It expects 652.2 billion operating profit, down 15.4% compared to 771 billion won in Q2 2018, and 15.6 trillion revenue, up 3.8% compared to 15.02 trillion won compared to the same quarter last year. According to analysts, reason for decline in profits is mainly due to its sluggish smartphone business, which has been the case for the company for the past few quarters.
These companies did not announce the performance of each business division. We should know the exact profit amount and division-wise results when these release full earnings results later this month.