Samsung SDI Dramatically Reduces Operating Loss, Returns to Net Profit

Sales Up 12.6% Year-on-Year
Operating Loss Sharply Reduced by 64.2%
Quarterly Profit Turnaround Expected in Second Half

Samsung SDI announced on April 28 that it successfully returned to profit in the first quarter of this year, reporting a net income of 56.1 billion won. Strong sales of energy storage systems (ESS) and high-value-added cylindrical batteries significantly reduced its operating loss by 64.2% compared to the same period last year.

According to industry sources, Samsung SDI recorded first-quarter sales of 3.5164 trillion won and an operating loss of 155.6 billion won this year. Compared to the first quarter of the previous year, sales increased by 12.6%, while the operating loss was reduced by 278.5 billion won. By segment, the battery business posted sales of 3.3544 trillion won and an operating loss of 176.6 billion won, while the electronic materials business reported sales of 222 billion won and an operating profit of 21 billion won.

In the battery segment, demand in downstream markets such as power ESS, uninterruptible power supply (UPS), battery backup units (BBU), and power tools recovered, leading to a 12.5% increase in sales and a 61.0% decrease in operating loss compared to the same period last year. In particular, the expansion of local production and sales of ESS batteries in the United States led to increased benefits from the Advanced Manufacturing Production Credit (AMPC), and strong sales of high-value-added cylindrical batteries significantly improved profitability. In the electronic materials segment, steady sales of semiconductor materials continued, and sales of display materials rebounded due to increased flagship smartphone sales from major mobile clients, resulting in improved performance compared to the same period last year.

Samsung SDI expects a continued recovery in demand and gradual improvement in performance from the second quarter onward. In particular, the company forecasts that demand in the electric vehicle battery segment will recover, driven by expanded subsidies in major European countries and rising total cost of ownership (TCO) for internal combustion engine vehicles. Samsung SDI plans to steadily pursue mass production of new projects as scheduled and focus on restoring profitability through improved utilization rates.

In the ESS battery segment, the company plans to expand local production and sales in response to increased demand resulting from the expansion of artificial intelligence (AI) data centers in the United States. Samsung SDI also intends to actively participate in the domestic ESS central contract market and next-generation power grid ESS linkage projects to continuously grow its related business. For the small battery segment, the company aims to expand sales of differentiated products such as tabless and high-power batteries, taking into account ongoing growth in the BBU and power tool markets and recovering demand for micro-mobility, both driven by increased AI data center construction.

A Samsung SDI official stated, "Uncertainty in the global business environment is expected to persist in the second quarter," adding, "We will strive to achieve a quarterly turnaround to profit in the second half by flawlessly implementing our business segment strategies."

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