The financial burden of Samsung Electronics Co.'s Note 7 crisisis becoming clearer, as South Korea’s largest company tallies thecost of recalling and terminating production of the fire-prone smartphone.
The Suwon-based company disclosed on Friday a negative impact ofapproximately mid-3 trillion won ($3 billion) on operating profitthrough March 2017, on top of an already announced $2.3 billion cutfor the preceding period.
The total of $5.3 billion is in line with analysts’ estimates.Chung Chang-Won at Nomura Holdings Inc., had estimated that theNote 7 termination would cost the company about $5 billion inoperating profit through 2017. Investors appear to have factored inan impact of that magnitude, and Samsung shares rose 1.3 percent to1.577 million won at the close in Seoul.
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