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Samsung profits ‘up 50%’

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An employee poses for photographs with Samsung Electronics' Galaxy Note 7 new smartphone at its store in Seoul, South Korea, September 2, 2016.  REUTERS/Kim Hong-Ji     TPX IMAGES OF THE DAY      - RTX2NUOR

An employee poses for photographs with Samsung Electronics’ Galaxy Note 7 new smartphone at its store in Seoul, South Korea, September 2, 2016. REUTERS/Kim Hong-Ji TPX IMAGES OF THE DAY – RTX2NUOR

Samsung has suggested it is riding out the challenges posed by the failure of its now-defunct Galaxy Note 7 smartphone.
Its forecast for the final quarter of 2016 showed that group operating profits would come in 50% up on the same period in 2015, at around $7.8bn (£6.3bn).
While it did not give a net profit figure – one that would highlight the impact of additional costs on the business – or a breakdown by company division, the operating profit figure was its highest for three years.
Analysts said Samsung’s semiconductor division was likely to have driven the performance – cashing in on strong demand and a tight supply for microchips.
They believed it would have contributed more than half of Samsung’s quarterly operating earnings. The full figures are released later this month.
Operating profit for the South Korean firm’s smartphone division fell 98% in the third quarter alone as the Note 7 fiasco took hold. It has since warned of extra costs topping $2bn.
Samsung first recalled the devices in early September after some were found to overheat and even catch fire.
The company had to recall the handset again just weeks later before finally discontinuing production entirely when owners of replacement phones also reported faults.
Samsung had blamed the first recall on batteries provided by a particular supplier and assured customers it was using a different supplier for its replacement phones.
The large-screen device was on the market for less than two months and there was further embarrassment when it was forced to recall millions of washing machines.
The company has promised to share “very soon” the findings of its investigation into the phone’s failure as part of its efforts to restore lost trust.
Those have been hampered by an investigation linking Samsung to the corruption scandal that forced the impeachment of the country’s president, Park Geun-hye, a month ago.
Samsung postponed its annual personnel reshuffle, usually announced in December, due to the inquiry.

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Samsung has suggested it is riding out the challenges posed by the failure of its now-defunct Galaxy Note 7 smartphone. Its forecast for the final quarter of 2016 showed that group operating profits would come in 50% up on the same period in 2015, at around $7.8bn (£6.3bn). While it did not give a net

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