Millennium Post

Samsung revises down Q3 earnings after discontinuing Galaxy Note 7

Preliminary figure for the third-quarter operating profit was revised down to 5.2 trillion won ($4.6 billion) from its initial estimate of 7.8 trillion won ($7 billion) unveiled last week, Xinhua news agency reported.

The operating profit was down 29.63 <g data-gr-id="67">per cent</g> from the same period last year. From the previous quarter, it was down 36.12 <g data-gr-id="68">per cent</g>.

The south Korean company has witnessed more than $20 billion being wiped off its market value in two days after announcing the halt in sales and production of Note 7 owing to battery explosion fears.

Revenue was downgraded from 49 trillion won to 47 trillion won. The third-quarter revenue was down 9.06 <g data-gr-id="69">per cent</g> from a year earlier. From the previous quarter, it fell 7.73 <g data-gr-id="71">per cent</g>.

"After recent incidents and in consideration of our consumers' safety, SEC has stopped sales, <g data-gr-id="76">exchanges</g> and production of the Galaxy Note 7. The revised pre-earnings guidance reflects the impact of this decision on the third quarter earnings," Samsung said in a statement.

Samsung has advised Note 7 owners to stop using the device -- both original and the replaced one.

"Consumers with either an original Galaxy Note 7 or a replacement Galaxy Note 7 device should power down and stop using the device, and take advantage of the remedies available," Samsung said in a statement.

"We are working with relevant regulatory bodies to investigate the recently reported cases involving the Galaxy Note 7," it added.

After incidents of Note 7 device catching fire in various flights, a replacement Note 7 device also reportedly caught fire on a US flight, leading to <g data-gr-id="75">cancellation</g> of the flight after evacuation.

Samsung has recalled nearly 2.5 million Galaxy Note 7 smartphones over battery overheating issues globally.
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