Manufacturer cites strong Korean won, decline in device shipments and increased marketing expenses for drops in profit and sales
Samsung has forecasted falls in operating profit and sales for Q2, but provided a brighter outlook for Q3.
In guidance for the three month period, the manufacturer estimated operating profit fell by 24.5 per cent annually to KRW7.2 trillion (£4.2 billion), with sales dropping 9.5 per cent to KRW52 billion (£300 million).
Samsung said the bleak Q2 forecasts were caused by a strong Korean won currency, lower than expected device shipments as a result of competition in Europe and China, and increased marketing costs.
The disappointing results come following comments from chief financial officer Lee Sang Hoon last month where he said he expected results to be “not that good”, despite the release of its flagship Galaxy S5 flagship smartphone at the start of Q2.
However, the manufacturer did provide a more optimistic outlook for Q3, expecting additional appreciation of the won to be “limited” compared to Q2.
It added it “cautiously expects a more positive outlook in the third quarter led by increased shipments of the coming release of its new smartphone lineup”.