Samsung Forecasts Weaker Fourth Quarter on Falling Prices
Samsung Electronics (SSNHY), the world's biggest maker of TVs, expects weaker fourth quarter earnings because of lower prices and a stronger South Korean won.
The fourth quarter will see "severe" competition in TV prices, Samsung said, according to Bloomberg News. There will be excess supply in the computer-memory chip market and persistent low prices in the market for liquid-crystal displays, Samsung said.
"We expect increased oversupply and price declines in the memory market, as well we possible further declines in LCD panels," Robert Yi, vice president of investor relations, said on a conference call. "Combining these with a possible appreciation of the won, we expect the overall fourth-quarter business conditions to be difficult."
Still, the company had a positive third quarter, with profits rising 17% to a record 4.46 trillion won ($4 billion).
Samsung said profit growth would slow in the fourth quarter, without giving details.