Samsung issued earnings guidance last week that suggested the calamitous Galaxy Note 7 recall wouldn’t have a major impact on the company’s bottom line, but the company just released a statement adjusting its forecast significantly. Operating profit for the third quarter of 2016 is now estimated to come in at 5.2 trillion won ($4.6 billion), down 33 percent from the previous figure, while revenue expectations have been slashed by 2 trillion won to 47 trillion ($41.8 billion).

Earnings of 5.2 trillion won would represent the first year-on-year profit decline for Samsung in a year. The company made 7.39 trillion won in Q3 2015, which was a return to profit growth after two years of decline; the company is now predicting a 30 percent drop…

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