Samsung recovers from Note 7 recall to post record profit

Korean tech giant Samsung (KRX:005930) reported a record quarterly profit on Friday, reassuring investors that it has recovered from the Galaxy Note 7 recall that had a serious impact on financial performance.

The company reported an operating profit of 14 trillion won in the three months to June, up 72 percent on a year earlier. Sales rose by 18 percent to 60 trillion won, as consumers flocked to buy the new flagship Galaxy S8.

The stronger than expected results show Samsung has appeared to have recovered from the disastrous Galaxy Note 7 recall, in which the flagship handset was dropped after a battery fault led to some devices catching fire.

The disaster had a significant impact on profits, allowing budget rivals such as China’s Huawei, Xiaomi and Oppo to gain market share.

Kim Dong-Won of KB Securities commented, “Samsung is believed to have topped the list of global IT companies, surpassing Intel and Apple, in terms of operating profits for the first time in history.”

The figures follow two quarters of similarly positive results, which both saw Samsung post its biggest profit in more than three years. Samsung shares are currently trading down 0.42 percent at 2,393,000 (1120GMT).