Singapore: Samsung Electronics Co. Ltd cut its outlook for third-quarter operating profit and sales after ending production of its fire-prone Galaxy Note 7 smartphones amidst the deepest crisis at the South Korean company in years.
Profit will be 5.2 trillion won ($4.63 billion) instead of 7.8 trillion won in the period, the company said in a regulatory statement Wednesday. Revenue will be 47 trillion won instead of 49 trillion won. Samsung cut its guidance less than a week after it was first issued, as costs from the global recall escalated and it decided to kill off the device. The company has been scrambling for answers in the wake of reports that smartphones were exploding, including supposedly safe models.
Wednesday’s announcement is the first time the company has put a price on the debacle; analysts had estimated it would cost at least $1 billion. Bloomberg