Samsung Electronics' operating profit drops 95.8 pct in Q1
South Korea's tech firm Samsung Electronics saw an earning shock in the first quarter on a sharp decrease in semiconductor demand, the company said Friday.
Preliminary operating profit stood at 600 billion won (455.2 million U.S. dollars) in the first quarter, down 95.8 percent from the same quarter of last year.
It marked the first time in 14 years since the first quarter of 2009 that the company's profit fell below 1 trillion won (758.6 million dollars).
Preliminary revenue declined 19 percent from a year earlier to 63 trillion won (47.8 billion dollars).
Net income and detailed earnings on each business unit will be announced later this month after an external audit and the board of directors' approval.
The sharp earnings fall was attributable to the faltering demand and the lower price for chips.
Market watchers estimated Samsung's chip-making unit recorded an operating loss of about 4 trillion won (3 billion dollars).