Samsung cuts profit forecast by $2.3 billion after Galaxy Note 7 saga

Also slashed $1.8 billion from sales in update to third quarter forecasts.
Written by Steve Ranger, Global News Director

The Samsung Galaxy Note 7.

Image: CNET

Samsung has revised its earnings guidance for the third quarter of 2016, cutting $2.3 billion (2.6 trillion won) from its operating profit and $1.8 billion (two trillion won) from its sales, just a day after stopping sales and production of its Galaxy Note 7.

The Korean electronics giant has been engulfed by the ongoing saga of its Galaxy Note 7 device, which has been hit by reports of batteries overheating and catching fire. Yesterday the company announced it was to stop making and selling the device for good after reports that replacement devices had also suffered problems with their batteries.

In an update to its third quarter earnings, Samsung said consolidated sales would stand at approximately 47 trillion Korean won, and consolidated operating profit at 5.2 trillion Korean won.

Samsung said the figures represent the median of the earnings estimate range with sales between 46 and 48 trillion Korean won, and operating profit: 5.1 to 5.3 trillion Korean won.

Showing how fast events are moving, Samsung only published its original third quarter sales forecast on 7 October, when it estimated its third quarter sales would be 49 trillion Korean won and operating profit at 7.8 trillion Korean won.

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