Samsung estimates weaker-than-expected 3Q operating profit

Samsung estimates weaker-than-expected 3Q operating profit

2010-10-07 12:36:27 GMT+7 (ICT)

SEOUL (BNO NEWS) -- Samsung Electronics Co. on Thursday reported weaker-than-expected earnings estimates for the third quarter, fueling concerns that demand for consumer electronics in the U.S. and Europe is slowing.

The company said in a statement that its operating profit rose 14 percent to 4.8 trillion won ($4.3 billion), below the KRW5.06 trillion analysts expected in a Dow Jones Newswires poll.

Samsung posted an operating profit of KRW4.22 trillion on sales of KRW35.89 trillion in the third quarter of 2009 and a record operating profit of KRW5.01 trillion in the second quarter of 2010.

"Samsung's earnings likely peaked in the second quarter. The company will face headwinds at least for a couple of quarters largely because of a slowdown in the recovery of the global economy, which hurts consumption," Lee Seung-woo, an analyst at Shinyoung Securities, told Dow Jones Newswires.

According to Lee, the company's profit will fall KRW3.5 trillion in the fourth quarter and KRW3 trillion in the first quarter of 2011.

Samsung is the Asia biggest maker of semiconductors and cellphones and the world's largest maker of flat-screen TVs.

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