Samsung's Q3 profit plunges on Galaxy Note 7 fiasco

Samsung Electronics saw its third-quarter profit plunge as the company's worst crisis surrounding Galaxy Note 7 smartphone resulted in a slash in earnings of its most profitable mobile division, a regulatory filing showed on Thursday.

Operating profit dropped 29.7 percent from a year earlier to 5.2 trillion won (4.6 billion U.S. dollars) in the July-September quarter. From three months ago, the profit tumbled 36.2 percent.

It marked the lowest in two years, meeting the revised estimate by Samsung which slashed its preliminary forecast by 2.6 trillion won to reflect costs from the discontinuation of its fire-prone smartphone.

Scores of reports about Note 7 phones heating up and catching fire led Samsung to terminate its latest flagship model. Hundreds of owners of the device here have sued Samsung for inconveniences they experienced in the recall and termination process.

The company's revenue declined 7.5 percent over the year to 47.82 trillion won in the September quarter, the lowest since the first quarter of last year. From the previous quarter, the revenue was down 6.1 percent.

Net income dropped to 4.54 trillion won in the third quarter from 5.46 trillion won a year earlier. From three months ago, the net income plunged 22.4 percent. Endit