Samsung expects Q3 operating profit to climb 5.4 per cent, despite the turmoil surrounding the global recall of millions of its Galaxy Note 7 handsets.
The South Korean vendor forecast consolidated operating profit for July-September will be KRW 7.8 trillion ($7 billion), up from KRW 7.4 billion in the year ago period.
Analysts previously suggested that the earnings performance of the company’s memory chip and display unit could offset the impact from the Note 7 recall.
The recall only started several weeks ago, relatively near the end of the third quarter. Samsung said 2.5 million devices globally are impacted.
However, it’s possible the saga may not be over if the Note 7 that caught fire on a US airliner this week does turn out, as the user said, to be a replacement model. The incident is being investigated by the US authorities.
Samsung has not said what the cost of the recall is likely to be, although analysts have pegged it as high as $2 billion.
Revenue in Q3 is expected to fall to KRW 49 trillion, down from KRW 52 trillion in the year ago period.
Samsung will issue full results towards the end of October.
