Samsung SDI reports record revenue in second quarter
Samsung SDI's net profit jumped 41.9 percent on year to 409.2 billion won ($315 million) in the second quarter, led by solid demand for mid-to-large batteries for electric vehicles (EVs).
That beat the market consensus of 387.4 billion won, compiled by FnGuide.
Revenue and operating profit reached quarterly records during the April-June period.
Quarterly revenue came in at a record high of 4.74 trillion won, up 42.2 percent on year and also beating the market expectation of 4.6 trillion won.
Operating profit stood at 429 billion won, also a record. This is the first time for the company to break 400 billion won in quarterly operating profit, it said.
"Sales of mid-to-large batteries increased, as well as the Gen. 5, driven by the rising demand of EVs," the company explained during a conference call Friday.
Gen. 5 is Samsung SDI’s nickel-cobalt-aluminum (NCA) battery with 88 percent nickel content. The company started mass producing the line last year. Its main customer for the Gen. 5 batteries is BMW.
"Sales of small batteries also rose, especially the cylindrical batteries," it added.
Samsung SDI was the only Korean battery maker that made money from the EV battery business in the second quarter.
LG Energy Solution, an EV battery maker 81.8 percent owned by LG Chem, said its net profit declined 86 percent on year to 90 billion won in the second quarter.
SK Innovation said its battery business generated an operating loss of 326.6 billion won.
Samsung SDI predicted a rosy fourth quarter.
Its Gen. 5 EV battery is expected to sell more in the second half, as its second Hungary plant is set to start mass production.
The Korean battery maker is also developing cylindrical batteries 46 millimeters in diameter, which many automakers worldwide have chosen for their EVs.
Samsung SDI is developing its own cylindrical batteries 46 millimeters in diameter. The height of the battery has not been decided yet.
"We are in talks with multiple global automakers for the supply of our 46 millimeter cylindrical batteries," said Lee Jae-young, head of Samsung SDI's small batteries department.
In May, Samsung SDI also announced that it will establish a joint venture with Stellantis to build an EV battery plant in Kokomo, Indiana. The factory will be the Korean battery maker's first battery-making facility in the United States.
BY SARAH CHEA [firstname.lastname@example.org]