Samsung Electronics has slashed its profit guidance for the third quarter of 2016 by 33%. The announcement was made one day after the company disclosed it had halted production of the Galaxy Note 7 and stopped sales of the device.

Samsung indicated after multiple incidents of the Galaxy Note 7 catching fire or exploding, the company has "stopped sales, exchanges and production" of the device.

Samsung now expects to post operating profits of between KRW5.1 trillion (US$4.54 billion) and KRW5.3 trillion for the third quarter of 2016, down from the KRW7.7-7.9 trillion estimated previously. The company also revised downward its sales guidance for the quarter to KRW46-48 trillion from KRW48-50 trillion.

Samsung reported operating profits of KRW8.14 trillion for the second quarter of 2016, up 21.9% on quarter and 18% from a year earlier, while revenues increased 2.3% sequentially and 4.9% on year to KRW50.94 trillion. The company credited its earnings growth to strong sales of its flagship Galaxy S7 and S7 edge devices.