South Korean Samsung's profits fall nearly 32%

South Korean giant Samsung Electronics expects operating profit to fall 31.7% year on year in the third quarter of 2022. REUTERS

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The South Korean giant Samsung Electronics announced this Friday, October 7 to expect a drop in operating profits of around 31.7% in the third quarter.

It's the first time in three years that the world's leading smartphone maker has forecast lower year-on-year profits. 

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This fall in profits is explained by the drop in global demand for electronic products due to the economic slowdown.

Indeed, the global economy is facing runaway inflation and high interest rates and a recession.

Uncertainties over Ukraine

Added to all this are the uncertainties linked to the conflict in Ukraine.

Companies and households are therefore reducing their consumption. 

World leader in electronic products, Samsung is very sensitive to the vagaries of the global economy.

The health of the company is scrutinized very closely in South Korea, as the group's turnover is equivalent to a fifth of the country's GDP.

Stock market declines

Sign of a slowdown in the sector, another heavyweight in the market, the American AMD known for the production of semiconductors, announced on Friday an increase in its turnover much lower than expected.

As a result, European semiconductor company stocks are falling on the stock market today.

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