The Samsung company announced yesterday that it expects to lose up to 3 billion dollars due to the cancellation of production Galaxy Note 7 this week. The number is very high, but it still represents a third of what the analysts calculated, expecting losses of 17 billion dollars following this fiasco.
Samsung claims that these losses of 3 billion dollars will be recorded in the next two fiscal quarters, so we are not talking about a negative impact that will affect the company in just one fiscal quarter. In 6 months, those from Samsung can compensate the 3 billion with receipts from the other divisions, so they will not suffer.
Samsung has already included the negative impact of this recall in its revenue and profit estimates for Q3 2016, so there are no questions from this point of view. For Q4 2016 and Q1 2017, those from Samsung have not yet provided financial estimates, but they will also include the 3 billion dollars that the company will lose.
In Q4 2016, Samsung is expected to lose most of the money, with the rest of the impact to be felt in the first fiscal quarter of 2017. Although we are talking about a very strong blow received by Samsung from a financial point of view after stopping sales of the Galaxy Note 7 , the company has sufficient resources to recover in the future.
"Samsung Electronics announced today that it estimates a negative impact of approximately mid-3 trillion won in operating profit from the fourth quarter of 2016 through the first quarter of 2017, due to the discontinuation of Galaxy Note7 sales. The negative impact is estimated in the mid-2 trillion won range for the fourth quarter of 2016 and at approximately 1 trillion won for the first quarter of 2017."
