Samsung Earnings Expected To Recover
Industry analysts expect Samsung Electronics’ earnings to recover in the fourth quarter despite the global recall of the Galaxy Note 7.
Financial information provider FnGuide estimated Samsung will post an operating profit of 7.67 trillion South Korean won ($9.11 billion), down 5.3 percent from forecasts before the recall.
2.5 million Note 7 devices have been recalled worldwide, including 51,000 in Australia. Analysts expect that strong sales of semiconductors will allow the company to recover financially in the final quarter of the year.
Samsung is also expected to post a lower than expected profit for the third quarter of the year of 5.8 trillion won ($6.89 billion), down by about 6.5 percent.
The Galaxy Note 7 was revealed on August 2nd, but reports of serious battery issues including potential for the battery to explode led to a mass recall of the product a month later. Samsung has begun shipping replacement devices to customers.