Samsung revises down estimate on third-quarter profit

By Park Sae-jin Posted : October 12, 2016, 16:40 Updated : October 12, 2016, 18:13

[Yonhap News Photo]


Samsung Electronics flagged a 29.63 percent fall Wednesday in its third-quarter operating profit in a revised earnings estimate reflecting an unexpected crisis in its smartphone business.

The new earnings guidance came a day after the world's largest smartphone maker suspended production and global sales of its flagship Galaxy Note 7 smartphone.

Last week Samsung said third-quarter sales would stand at 49 trillion won (43.6 billion US dollars), down 5.19 percent on year, while operating profit is estimated at 7.8 trillion won, compared with 7.39 trillion won a year ago and 8.14 trillion won in the previous quarter.

Samsung said Wednesday that third-quarters sales are expected to stand at 47 trillion won, down 9.06 percent on year and down 7.73 percent from the previous quarter.

The company predicted it would post 5.2 trillion won in third-quarter operating profit, down 29.63 percent from a year ago and down 36.12 percent from the second quarter. 

HI Investment and Securities said Samsung would lose as much as three trillion won if it decides to dump 4.3 million Note 7s produced so far.

The company's net profit estimate was not given.

Aju News Lim Chang-won = cwlim34@ajunews.com
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