Samsung SDI Q2 Operating Profit Down 34%... Demand Decline Due to COVID-19 Impact

Sales of 2.5586 trillion KRW, Operating Profit of 103.8 billion KRW

[Asia Economy Reporter Dongwoo Lee] Samsung SDI announced on the 28th that it recorded preliminary consolidated results for the second quarter of this year with sales of 2.5586 trillion KRW and an operating profit of 103.8 billion KRW.

Compared to the same period last year, sales increased by 6.4%, while operating profit decreased by 34%. Net profit for the same period fell by 70.2% to 47.7 billion KRW.

Sales in the battery business division reached 1.9187 trillion KRW, up 7.0% from the previous quarter. In particular, among medium and large batteries, energy storage systems (ESS) saw increased overseas sales centered on power projects in the Americas. However, automotive battery sales declined due to the impact of major customer shutdowns caused by COVID-19.

For small batteries, sales of batteries for major applications increased due to the base effect from the first quarter. Polymer battery sales decreased, mainly for flagship mobile phones, due to a weak market.

Sales in the electronic materials business division were 638.1 billion KRW, up 6.0% from the previous quarter. Semiconductor materials sales increased due to strong demand for server DRAM. Among display materials, sales of polarizing films increased due to expanded sales for IT products such as tablets and notebook PCs. However, OLED material sales declined due to weak smartphone demand.

Samsung SDI expects sales of medium and large batteries to increase and profitability to improve in the second half of the year. Sales of batteries for electric vehicles are expected to rise due to expanded electric vehicle support policies in Europe, and ESS sales are expected to increase mainly for overseas power projects.

For small batteries, Samsung SDI anticipates increased sales of cylindrical batteries for micro-mobility such as electric bikes and scooters, and polymer battery sales will increase due to the launch of flagship smartphones by major buyers.

The outlook for the electronic materials business division is also positive. Steady sales growth of semiconductor materials is expected to continue, and OLED sales will benefit from the launch of new models by buyers. However, sales of polarizing films are expected to slightly decline due to weakened IT demand.

This content was produced with the assistance of AI translation services.