Samsung SDI, 2Q operating profit of 103.8 billion won

34% decrease compared to the previous yearProfitability improvement expected in 2H mainly on EVs and ESS batteries

 

In the second quarter of this year, Samsung SDI recorded a 30% decrease in operating performance from the previous year due to the spread of Corona 19 and the mobile market downturn. However, profitability is projected to improve in 2H10, centered on electric vehicles and energy storage devices (ESS).

Samsung SDI announced on the 28th that the sales of the financial statements in the second quarter of the second quarter were tentatively totaled at 2.5 trillion 58 billion won and operating profit of 138 billion won.

Sales increased 6.4% yoy, but operating profit fell 34.0% yoy. Compared to the previous quarter, the first quarter of this year, sales and operating profit increased by 6.7% and 92.2%, respectively.

The sales of the battery (battery) business increased by 7.0% from the previous quarter to 1.91 trillion won.

Electric vehicle batteries decreased sales due to major customer inactivity due to corona, and ESS increased overseas sales, mainly in the Americas power project.

In the case of small batteries, battery sales for major applications increased due to the base effect in 1Q. However, sales of polymer batteries continued to weaken, and sales of flagship mobile phone batteries declined.

 

The sales of the electronic materials business division increased by 6.0% compared to the previous quarter to KRW 681.1 billion.

Sales of semiconductor materials increased due to brisk demand for server DRAM. In the case of polarizer films among display materials, sales increased due to increased sales of IT products such as tablets and notebooks, but organic light-emitting diode (OLED) materials decreased sales due to weak smartphone demand.

The outlook for the second half is bright. Sales of medium and large-sized batteries are expected to increase in Europe due to the launch of new electric vehicle models by major automakers. In addition, the electronic materials division is also expected to improve profitability as sales increase.

 

Samsung SDI said, “ Automobile battery sales will continue to increase due to the expansion of European electric vehicle support policies. ESS sales will continue to increase mainly for overseas electric power. It is also expected that sales will increase due to the launch of flagship smartphones by major customers.”

"Semiconductor materials are expected to continue to show solid sales growth and OLED materials are expected to increase significantly due to the launch of new customer models." However, polarized film sales are expected to decrease slightly due to slow demand for IT.