Tuesday, December 11th, 2018 pm31 11:10pm

Samsung forecasts 50% profit jump despite Galaxy Note 7 saga

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Samsung had a pretty dire last quarter of business as profits dropped by 30 percent thanks primarily to the recall of the Galaxy Note 7. There’s some New Year cheer, however, with news that the Korean firm is forecasting profit for its current Q4 2016 quarter to jump by 50 percent year-on-year.

Samsung is estimating an operating profit of 9.2 trillion KRW ($7.75 billion) on sales of 53 trillion KRW, or approximately $44.6 billion. That sales prediction is less than one percent lower that what it booked one year ago for its Q4 2015. That’s surprising given the Note 7 saga — the phone was eventually recalled after some customers’ devices exploded due to faulty batteries — which was tipped to massively damage Samsung’s brand reputation not to mention weigh it down financially.

Kim Sung-soo, a fund manager at LS Asset Management, told Reuters that Samsung’s mid-range devices have helped it weather the storm. Further, steady component sales and the depreciation of the Korean Won may also be helpful factors for Samsung.

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