Samsung to announce Q3 earnings guidance on Oct. 7

[THE INVESTOR] Keen attention is being paid to Samsung Electronics’ planned release of its third-quarter earnings guidance that will be issued on Oct. 7 amid a massive recall of the latest Galaxy Note 7 smartphone.

As of Sept. 20, local analysts forecast the company’s operating profit in the July-September period at about 7.7 trillion won (US$7 billion), a plunge from an estimated 8.2 trillion won a month ago before the recall decision.

Industry watchers say the figure could decline further to 7 trillion won considering the mounting costs for the recall of all 2.5 million Note phones globally. 

In the second quarter, the company posted an operating profit of 8.14 trillion won, of which the mobile business division made up 4.32 trillion won.
Many securities firm estimated the recall costs, including reduced device sales, at about 1.1 to 1.5 trillion won, while IBK Investment & Securities projected the loss to be worth up to 3 trillion won.

By Lee Ji-yoon (jylee@heraldcorp.com)