This photo, filed Oct. 26, 2022, shows Samsung SDI Co.’s headquarters in Giheung, about 40 kilometers south of Seoul.
SEOUL, July 27 (Korea Bizwire) — Samsung SDI Co. said Thursday its second-quarter operating income rose 4.9 percent from a year earlier, buoyed by solid demand in its premium electric vehicle (EV) batteries.
Operating profit reached 450.2 billion won (US$354.7 million) in the April-June period, compared with 429 billion won the previous year, the company said in a regulatory filing.
Revenue increased 23.2 percent to 5.84 trillion won. Net income came to 485.8 billion won, up 18.7 percent from a year earlier.
The earnings beat market expectations. The average estimate of net profit by analysts stood at 441.7 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
The energy segment, which includes the batteries for EVs and energy storage systems (ESS), fared well on the back of firm demand for premium P5 batteries, Samsung SDI said.
The ESS sales also increased in utility and battery backups, known as uninterruptible power supply (UPS).
The revenue from the batteries division reached 5.27 trillion won, up 29.4 percent on-year, with the operating profit growing 58.5 percent on-year to 388.1 billion won. The operating margin stood at 7.4 percent.
The operating profit for the electronic materials sector sank 66 percent on-year to 62.1 billion won on sales of 570.5 billion won, a 14.7 percent decrease from a year ago, due largely to a decline in demand for semiconductor process materials.
Samsung SDI Co.’s electric vehicle batteries are seen in this photo provided by the battery making unit under Samsung Electronics Co. on July 27, 2021.
Samsung SDI said it plans to respond to rising demand for EV batteries with the start of its new production line in Hungary in the second half.
Talks are also ongoing with potential customers over the supply of all-solid-state batteries, a next-generation cell under development by many battery makers, from 2027, said Son Michael, senior vice president for the strategic marketing team.
“Detailed discussions are under way with automakers about installing (our solid state battery samples) to their demo vehicles,” Son said.
Solid-state batteries have gained traction for reducing fire risks due to their solid electrolyte, rather than the liquid-based ones in existing cells.
Samsung SDI said it will continue to expand the EV battery business to meet the growing demand in the second half.
Sales of its premium P5 batteries are likely to take up over 50 percent of the company’s total prismatic battery sales portion, contributing to earnings growth down the road.
Samsung SDI recently signed an initial deal with Stellantis N.V. to build a second battery manufacturing facility in the United States, with the location to be announced at a later date.
This will boost its annual capacity in the U.S. to about 100 gigawatt hours by 2027.
Shares in Samsung SDI fell 5.83 percent to 662,000 won on the main Seoul bourse Thursday, versus the broader KOSPI’s 0.44 percent gain. The earnings results were released before the market opened.
(Yonhap)
