Samsung Electronics Q3 operating profit plunges 30 percent year-on-year

South Korean electronics giant Samsung Electronics Co Ltd’s third quarter operating profit fell 30 percent year-on-year owing to the recent withdrawal of its flagship Galaxy Note 7 smartphones from the markets.

The profits of the entity sank to its lowest level in two years. The profit plunge has been mainly attributed to the highly damaging recall crisis that hammered the reputation of the world's largest smartphone maker.

Samsung electronics third quarter earnings were announced on Thursday morning, just hours before the start of an annual shareholder meeting which was set to approve the latest step in a complex generational change of leadership at the family-run South Korean conglomerate.

Samsung said its operating profit for the July-September period stood at 5.2 trillion won ($4.6 billion), down almost 30 percent from the previous year.

The profit slump was in line with a revised earning estimate issued by Samsung two weeks ago after it killed off its flagship Galaxy Note 7 smartphone due to devices overheating and bursting into flames.

The world's top smartphone maker said third-quarter operating profit was 5.2 trillion won ($4.57 billion), matching its revised guidance. The firm had initially estimated a 7.8 trillion won profit but cut its guidance to reflect losses incurred in the withdrawal of the fire- prone Note 7s.