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(LEAD) Samsung SDI logs record-high profit in Q3 on robust EV battery sales

All News 09:37 October 26, 2022

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By Kim Seung-yeon

SEOUL, Oct. 26 (Yonhap) -- Samsung SDI Co. said Wednesday it posted record-high profit and sales in the third quarter on the back of strong demand for secondary batteries used in electric vehicles.

Operating profit reached 565.9 billion won billion won (US$396 million) in the July-September period, up 51.5 percent from 373.5 billion won the previous year, the South Korean battery maker said in a regulatory filing.

Sales rose 56.1 percent to 5.37 trillion won while net profit came to 638.3 billion won, up 51.8 percent from a year earlier.

The earnings exceeded market expectations. The average estimate of net profit by analysts stood at 497 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

The stellar performance was attributable to its lucrative battery segment, which generated 4.83 trillion won in sales for the third quarter, up 76.4 percent from the previous year, Samsung SDI said.

Its operating profit more than doubled to 484.8 billion won, with the operating margin coming in at 10 percent.

Increased sales of its premium Gen. 5 batteries improved its profitability, contributing to the stronger bottom line, amid burgeoning EV battery demand.

The energy storage system (ESS) battery sector also fared better due to sales growth in Europe.

Its electronics materials business saw sales shrink 23.6 percent to 534 billion won, with operating profit falling 53 percent to 81.1 billion won, due largely to faltering demand in display components.

Samsung SDI said it expects solid growth for the fourth quarter as well, given the usual seasonal effect expected for the three-month period. It expects new vehicle models that use Gen 5 batteries will be released toward the end of the year, with growing demand forecast for ESS batteries.


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