Samsung SDI is in the black with EV battery business

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Samsung SDI is in the black with EV battery business

Published: 02 Nov. 2021, 16:37 Updated: 02 Nov. 2021, 19:11

[YONHAP]

Samsung SDI's net profit rose almost 75 percent in the third quarter on the back of rising demand for batteries and electronics materials.

The Korean battery maker reported a net profit of 420.4 billion won ($360 million) in the third quarter, a 74.7 percent rise over a year earlier.

The figure easily beat the market expectation of 338.3 billion won made by FnGuide.

Sales and operating profit reached quarterly records during the July-Sept. period.

Sales came to 3.4 trillion won, an 11.4 percent year-on-year rise, and operating profit was 373.5 billion won, 39.7 percent higher.

The battery maker was able to dodge the impact of a global auto chip shortage because automakers tended to prioritize the making of electric vehicles (EVs) over internal combustion engine vehicles, according to Samsung SDI.

“Demand for mid-and-large-sized batteries inched down but the business was able to stay in the black,” Samsung SDI said in a release Tuesday.

“The EV battery business also stayed in the black for two consecutive quarters."

Samsung SDI was the only Korean battery maker that made money from the EV battery business in the third quarter.

LG Energy Solution, a wholly owned subsidiary of LG Chem, said it reported an operating loss of 372.8 billion won in the third quarter.

SK Innovation said its battery business reported an operating loss of 98.7 billion won.

Samsung SDI’s electronics materials business reported an operating profit of 171.7 billion won in the third quarter, a 32.9 percent increase over a year before.

“The electronics materials business was able to raise its profitability due to rising sales of high value-added products,” Samsung SDI said.

Samsung SDI predicted a rosy fourth quarter.

Its flagship Gen. 5 battery for EVs is expected to sell more in the fourth quarter, the company said.

“Gen. 5 is currently being supplied to BMW’s new models, but its customers will expand next year, giving a big boost to its sales.”

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]