Samsung expects higher profits despite Note 7 recall


Samsung Electronics says its operating profits are expected to have risen in the third quarter, despite the recall of its Galaxy Note 7 smartphone.

Profits for the July to September period are forecast to be 5.6% higher at 7.8 trillion won ($7bn; £5.7bn).

Analysts had expected worse numbers after the Note 7 recall over faulty batteries and “exploding” phones.

The earnings guidance does not give any details about the performance of individual businesses.

The flagship Galaxy Note 7 was recalled in 10 markets around the world, including the US, Europe and South Korea.

Some estimates had suggested the recall would reduce Samsung’s profits by 1tn won or more.

However, a strong performance by its chip and display business is expected to have offset some of those losses.

The earnings guidance did not comment on calls by investors to radically restructure the firm into two separate holding and operating companies.

On Thursday, Samsung had said it was “carefully reviewing” the suggestion.



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