The financial burden of Samsung Electronics Co.'s Note 7 crisis is becoming clearer, as South Korea’s largest company tallies the cost of recalling and terminating production of the fire-prone smartphone.
The Suwon-based company disclosed on Friday a negative impact of approximately mid-3 trillion won ($3 billion) on operating profit through March 2017, on top of an already announced $2.3 billion cut for 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 the Note 7 termination would cost the company about $5 billion in operating profit through 2017. Investors appear to have factored in an impact of that magnitude, and Samsung shares rose 1.3 percent to 1.577 million won at the close in Seoul.
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