Samsung SDI Reports Q3 Operating Profit of 373.5 Billion KRW... Highest Quarterly Record (Update)

[Asia Economy Reporter Jeong Hyunjin] Samsung SDI achieved record-high performance in the third quarter of this year, driven by growth in its battery and electronic materials businesses.

Samsung SDI announced on the 2nd that its third-quarter sales reached KRW 3.4398 trillion, and operating profit was KRW 373.5 billion, representing increases of 11.4% and 39.7% respectively compared to the same period last year. Compared to the second quarter, sales grew by 3.2% and operating profit by 26.5%. Both sales and operating profit marked the highest quarterly results to date.

Sales in the energy and other segments, the company’s core businesses, amounted to KRW 2.7409 trillion, up 15.0% year-on-year and 1.1% quarter-on-quarter. Operating profit expanded by 46% compared to the third quarter of last year and by 19.6% compared to the second quarter.

Although demand for mid- to large-sized batteries decreased compared to the previous quarter, profitability was maintained. Automotive batteries were affected by reduced demand due to a shortage of vehicle semiconductors, but sales increased centered on high value-added products, sustaining profitability. Energy Storage Systems (ESS) saw a decline in sales due to the supply schedule of major projects. For small batteries, cylindrical batteries increased sales mainly in mobility sectors such as electric vehicles and electric bicycles, while pouch-type batteries improved profitability due to increased sales for new smartphones and wearables from key customers, Samsung SDI explained.

Sales in the electronic materials segment were KRW 698.9 billion, down 0.7% year-on-year but up 12.3% quarter-on-quarter. Operating profit was KRW 171.7 billion, a 32.9% increase compared to the third quarter of last year. Electronic materials saw improved profitability due to increased sales of high value-added products. Semiconductor materials grew with high value-added products such as Spin-On Hard Mask (SOH), OLED materials increased sales for flagship smartphones, and polarizing films expanded their sales share for large TVs.

Samsung SDI expects that in the fourth quarter, sales of mid- to large-sized batteries will increase centered on new models and high value-added products, while sales of small batteries will expand mainly in cylindrical batteries. Although semiconductor supply issues for automotive batteries are expected to continue, sales will increase with the expansion of Gen.5 battery supply, and ESS sales will grow focusing on UPS (Uninterruptible Power Supply) and home ESS, improving profitability. Cylindrical batteries are expected to see increased sales for key applications such as electric vehicles and power tools, and pouch-type batteries are expected to expand sales for overseas customers’ new smartphones.

The electronic materials segment is expected to continue expanding sales of semiconductor and OLED materials. Semiconductor materials sales are expected to increase slightly, and OLED materials sales are expected to grow as adoption expands for smartphones. However, Samsung SDI forecasts that sales of polarizing films will decline due to seasonal off-season effects.

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