Friday 14 October 2016

Samsung warns of £4.3bn hit from Note 7 saga



The South Korean firm has endured a torrid week in which it decided to scrap the model altogether after failing to overcome lithium-ion battery problems which led to phones overheating and exploding.

It had initially insisted that replacement models were safe.

As the firm continued to lick its wounds and provide support to recall efforts, it told investors on Friday it was now forecasting an £2.46bn knock to profits in the looming financial quarters ahead.

Samsung admits defeat by permanently discontinuing Galaxy Note 7 That sum was on top of the £1.9bn hit it said would likely to be booked in the July to September period.

The update was the third forecastto be issued by Samsung in a week.

It hadoriginally predicteda6% increase to operating profits to £5.75bn for its last quarter - boosted by strong sales in its component business.It will officially report its numberslater this month.

Source: News.sky.com

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