Manufacturer expecting a 5.6 per cent increase in Q3 profits but revenues are likely to be down by 5.2 per cent
Samsung is expecting its operating profits to rise 5.6 per cent in the third quarter, despite the mass recall of its Galaxy Note7 smartphone.
Reporting earnings guidance for the July-September period, the manufacturer is forecasting profits of Won7.8 trillion, rising by Won400 billion from a year ago.
However, revenues are expected to slide 5.2 per cent to Won49trillion.
Samsung’s guidance didn’t provide a financial breakdown of its individual businesses. It will release its full results on October 27.
Galaxy Note7 recall
The profit rise comes despite Samsung recalling 2.5 million Galaxy Note7 smartphones globally after several reports of them burning and catching fire due to faulty batteries.
Samsung pulled all stock from the UK on September 2 and four days later announced an exchange programme whereby working in collaboration with its partners and operators, it would voluntarily replace their Note7 with a new one.
This began on September 19 and just over a week later, the manufacturer revealed that more than 57 per cent of Note7 smartphones had been traded in by customers across Europe.