Oct. 7, 2019, 8:40 p.m. EDT

Samsung predicts profit plunge, but rebound ahead

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By MarketWatch

SEOUL -- Samsung Electronics Co.'s expectations for its third-quarter earnings provided some enthusiasm that the beleaguered global tech supply chain could be nearing a rebound.

Samsung, the world's largest producer of memory chips and smartphones, said it expects a third-quarter operating profit of 7.7 trillion South Korean won ($6.4 billion). That would be a drop of 56.2% from a year earlier -- when profit soared to a record high -- though it bested a 7.2 trillion won estimate based on analysts polled by S&P Global Market Intelligence.

The South Korean tech giant expects revenue will fall 5.3% to 62 trillion won year-over-year.

"We're approaching the end of a downturn," said Avril Wu, senior research director of DRAMeXchange, which tracks semiconductor sales. But, Ms. Wu added, chip prices could still fall until the end of the year before they start growing again.

Write to Eun-Young Jeong at Eun-Young.Jeong@wsj.com

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