SEOUL, Jan. 6 (Xinhua) – Samsung Electronics (KS: 005930) today estimated operating profit of 9.2 trillion won for the fourth quarter of 2016 (October-December), which 49.8% year-on-year more, despite the global withdrawal of Galaxy Note 7.
The amount is also 76.9% higher than the 5.2 trillion won (4.14 billion euros) that the South Korean electronics giant recorded in the July-September quarter (down 29.6% Inter-annual), multi-million dollar losses caused by spontaneous fires that affected the model.
In terms of turnover, the conglomerate expects sales of some 53 trillion won (€ 42,195 million) for the last quarter of 2016, a decrease of 0.6% compared to the same period in 2015, as detailed In a statement.
Samsung also unveiled today its estimate for the full fiscal year 2016, in which it expects to record operating profit of 29.22 trillion won (23.26 billion euros), up 10.6% year-on-year, and sales of 201.54 Trillion won (€ 160,420 million), a shy 0.44% more year-on-year.
The South Korean conglomerate marketed its Galaxy Note 7 smartphone in August 2016, but in early September announced an unprecedented withdrawal after more than 30 cases of terminal combustion were reported in several countries.
The call for a review that affected about 2.5 million phones was followed by the delivery of replacements, which nonetheless continued to overheat the batteries, prompting the company to freeze sales and cease production of its New device in October last year.
Samsung then estimated a negative impact of around 3.5 trillion won (2,785 million euros) in its operation in the months following until March 2017