Samsung SDI Q1 Operating Profit 54 Billion KRW... 54% Decrease YoY
[Asia Economy Reporter Changhwan Lee] Samsung SDI recorded sluggish first-quarter earnings due to the impact of COVID-19 and other factors.
On the 29th, Samsung SDI announced that it achieved first-quarter sales of 2.3975 trillion KRW and an operating profit of 54 billion KRW.
Sales decreased by 423.4 billion KRW (-15.0%) compared to the previous quarter, while operating profit increased by 33.9 billion KRW (168.7%). Compared to the same period last year, sales increased by 93.4 billion KRW (4.1%), but operating profit decreased by 64.8 billion KRW (-54.6%).
By business division, the battery business recorded sales of 1.7936 trillion KRW, down 18.8% from the previous quarter. Among medium and large batteries, automotive battery sales declined due to seasonal off-season, and ESS (Energy Storage System) sales also decreased due to weak domestic demand.
In the small battery segment, cylindrical battery sales declined due to the impact of COVID-19. However, polymer battery sales were maintained despite a weak market, thanks to the launch of new models by major customers.
The electronic materials division posted sales of 602 billion KRW, slightly down from the previous quarter. Semiconductor materials sales remained steady due to increased demand for DRAM, and polarizing film sales slightly increased mainly for large TVs, but sales declined due to weak demand for OLED (Organic Light Emitting Diode) materials.
In the second quarter, sales of medium and large batteries are expected to slightly increase compared to the first quarter, mainly driven by ESS. Automotive battery sales are expected to maintain the previous quarter’s level, and ESS sales are anticipated to grow centered on overseas power projects.
Small battery sales are expected to recover with increased sales of cylindrical batteries used in power tools and vacuum cleaners, while polymer batteries are expected to be affected by weakness in the smartphone market.
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The electronic materials division is expected to maintain sales at the previous quarter’s level in the second quarter. Although demand for display materials is expected to weaken, demand for semiconductor materials is projected to increase, mainly driven by server DRAM.
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