South Korean electronic giant, Samsung, has predicted massive profits growth in the final quarter of 2016 despite a tough year following the failure of it’s much anticipated Note 7.
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, SkyNews reports.
Samsung has suggested it is riding out the challenges posed by the failure of its now-defunct Galaxy Note 7 smartphone.
