Samsung releases 2016 Q3 financial results; reports its worst operating profit in two years

Bigwig South Korean device maker Samsung declared its financial results for the 2016 third quarter on Wednesday, reporting its worst operating profit in two years; thanks chiefly to the company's Galaxy Note 7 debacle.

Samsung was banking heavily on its August-launched Galaxy Note 7 handset to bounce back in the fiercely competitive smartphone market, and was expecting a modest year-on-year increase in its operating profit during the third quarter. However, the company was forced to issue a global recall of the handset in September, and subsequently discontinue it in early October, because of reports about the device's exploding batteries.

As a result of the Galaxy Note 7 fiasco, the operating profits reported by Samsung's mobile division in the 2016 third quarter stood at 100 billion Korean won (approximately $87.9 million), underscoring a substantial 96 percent plunge as compared to the figures reported by the company in the same quarter in 2015.

Overall, Samsung's net operating profits during the 2016 third quarter fell 30 percent year-on-year to 5.2 trillion won, from last year figures of 7.4 trillion won. The company's revenues for the latest reporting quarter dropped by 7.5 percent to 47.8 trillion won, from 51.7 trillion won reported in the same quarter last year.

The 2016 third-quarter financial results reported by Samsung would apparently not come as much of a surprise, because the company had already projected that the cost of the Galaxy Note 7 recalls and cancellation would be more than $5 billion.