Samsung, Stung by Trade War, Expects a Big Plunge in Profits



Michael J. de la Merced | The New York Times

President Trump’s trade war with China has been felt around the world. The latest casualty: the South Korean electronics giant Samsung Electronics.

The company said on Friday that it expected its second-quarter operating profit to fall more than 50 percent, to 6.5 trillion won, or about $5.6 billion. It only managed to beat analysts’ expectations because of a onetime gain in its display business.

Samsung’s disclosure on Friday illustrated the troubles that an escalating series of trade fights are wreaking on the global economy, particularly for huge companies that sell finished products as well as components around the world.

Samsung, a leading producer of the components in an array of gadgets, was already experiencing a slowdown in sales of smartphones and other technology products. It has been particularly hurt by a glut of memory chips.

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