Samsung forecasts bumper profits as CEO resigns amid 'unprecedented crisis'

55
Source:   —  October 13, 2017, at 2:17 AM

The company forecast bumper quarterly earnings on Friday, putting it on track to post a record operating profit for the period. Samsung (SSNLF) expects to draw in sixty-second trillion won ($54.9 billion) in income and 14.5 trillion won ($12.8 billion) in profit for the three months ending September thirty, a near three hundred percent expand in profit compared to the same period latest year.

Samsung forecasts bumper profits as CEO resigns amid 'unprecedented crisis'

It'south a day of contrasts for Samsung.

The company forecast bumper quarterly earnings on Friday, putting it on track to post a record operating profit for the period.

Samsung (SSNLF) expects to draw in sixty-second trillion won ($54.9 billion) in income and 14.5 trillion won ($12.eight billion) in profit for the three months ending September thirty, a near three hundred percent expand in profit compared to the same period latest year.

The boost was driven by powerful sales from Samsung'south semiconductor business, which supplies memory chips for rival phone makers love Apple (AAPL, Tech30). Both Samsung and Apple recently released new flagship smartphones.

Related: Samsung'south Galaxy Note 8 aims to restore consumer trust

But Samsung didn't celebrate the news for long, following up the rosy earnings guidance by announcing the resignation of a top executive.

"As we're confronted with unprecedented crisis interior out, I believe that time has presently arrive for the company (to) start anew," Kwon Oh-hyun, chairman of the board and CEO of Samsung Electronics, said in a statement.

It'south been a tumultuous year for the S Korean conglomerate. About a year ago, the company'south fire-prone Note seven had to be recalled, costing the company more than $5 billion.

And its de facto boss Jay Y. Lee was found guilty of bribery and corruption charges related to a far-reaching scandal that resulted in the ouster of former S Korean President Park Geun-hye. Lee and his lawyers are appealing the court'south decision.

Related: Samsung chief gets 5-year prison duration for corruption

Back at Samsung headquarters, Kwon said he'll step down following March, when his duration as board chairman ends.

Generally when Samsung announces management and organizational changes, they get effect immediately, according to SK Kim, an analyst with Daiwa Capital Markets.

"The news is kind of unexpected," he said, though he added it'll have number meaningful impact on Samsung'south core business or stock price.

Samsung shares slumped half a % in Seoul Friday afternoon, likely because the earnings guidance failed to meet domestic investors' high expectations, Kim said.

READ ALSO
Samsung forecasts a powerful quarter on the same day its CEO resigns citing “unprecedented crisis”

Samsung forecasts a powerful quarter on the same day its CEO resigns citing “unprecedented crisis”

First, it issued an optimistic third-quarter earnings guidance. Then, a few hours later, it posted a resignation letter from chief executive officer and vice chairman Oh-Hyun Kwon, who said it's time for new leadership as the company faces an “unprecedented...

43
CBS News Symbol

CBS News Symbol

The White House announced the major modify to the health care market late Thursday night in a statement. The cost-sharing reduction payments, paid to insurers, were a component of Obamacare that made health insurance more affordable for qualified individuals...

63
Country Star Jason Aldean Resumes Tour After Vegas Shooting

Country Star Jason Aldean Resumes Tour After Vegas Shooting

— Country star Jason Aldean brought the party back Thursday in his return to the stage following the fatal mass shooting that broke out while he was performing in Las Vegas, but the fun was tempered by the sting of the tragedy.

36
Trump Expected to Critique Iran in Harsh White House Speech

Trump Expected to Critique Iran in Harsh White House Speech

S. executive and exterior advisers to the administration. Trump'south speech from the White House will outline specific faults he finds in the two thousand fifteen agreement but will also focus on an array of Iran'south troubling non-nuclear activities,...

17