Samsung Electronics profit guidance beats expectations on one-off gains, outlook weak

Samsung Electronics Co Ltd forecast a steep plunge in its second-quarter operating profit as the U.S.-China trade war wreaks havoc in global chip and smartphone markets, although one-off gains helped it beat analyst expectations.
The South Korean tech giant is on track to post year-on-year profit declines for a third consecutive quarter as chip prices fell due to a supply glut and U.S. sanctions on Chinese telecom equipment maker Huawei Technologies, a key Samsung client.
Memory chipmakers like Samsung and South Korea’s SK Hynix are hurting as rising tariffs hit global demand for electronics. Seoul cut its annual economic growth target on Wednesday to a seven-year low as exports slump.