GLOBAL MARKETS: Samsung dials down
South Korean tech giant estimates that earnings grew at the slowest pace in more than a year in the second quarter
Rolls-Royce Holdings has agreed to sell its ailing ship-design division to Norway’s Kongsberg Gruppen ASA, in what amounts to a state rescue for an oil-focused business by the country in which most of its 3,600 workers are based. The deal will have an enterprise value of £500m, Rolls-Royce said.
The marine arm has already closed sites and cut thousands of jobs after demand for its technology and services fell following a slump in the price of oil.
South Korean tech giant Samsung Electronics estimated that earnings grew at the slowest pace in more than a year in the second quarter, as analysts said weak smartphone sales probably offset record chip earnings.
Samsung shares fell 2% as the guidance gave investors insight into how badly the decline in smartphone profitability is hurting the company’s bottom line.
The world’s biggest maker of memory chips, smartphones and TVs said April-June operating profit would grow 5.2% to 14.8 trillion Korean won, just missing an average estimate of 14.9 trillion won from 18 analysts polled by Thomson Reuters.