Samsung Electronics cuts memory chip production as profit declines

Samsung Electronics said Friday it's cutting the production of its computer memory chips in an apparent effort to reduce inventory as it forecasted another quarter of sluggish profit.

The South Korean technology giant in a regulatory filing said it has been reducing the production of certain memory products by unspecified meaningful levels to optimize its manufacturing operations, adding it has sufficient supplies of those chips to meet demand fluctuations.

The company predicted an operating profit of 600 billion won ($455 million) for the three months through March, which would be a 96% decline from the same period a year earlier. It said it sales during the quarter likely fell 19% to 63 trillion won ($47.7 billion).

Samsung, which will release its finalized first quarter earnings later this month, said the demand for its memory chips declined as a weak global economy depressed consumer spending on technology products and forced business clients to adjust their inventories to nurse