 |
| Samsung SDI plant in Gumi, South Gyeongsang Province / Courtesy of Samsung SDI |
By Kim Hyun-bin
Samsung SDI has been able to rebound from a devastating first quarter caused by the COVID-19 pandemic.
The company's second-quarter operating profit rose 92.35 percent while sales also increased 6.72 percent from the first three months of the year
However, it was not able to fully recover, recording just 103.8 billion won in operating profit for the quarter, down 34 percent compared to the same period last year, despite sales increasing to 2.56 trillion won, the company said in a regulatory filing, Tuesday.
Sales from the battery business increased 7 percent to 1.92 trillion won. Mid- to large-sized battery sales dropped slightly due to the coronavirus outbreak, but the deficit was covered by an increase in overseas sales of energy storage systems (ESS).
"ESS sales are expected to increase in the Americas," SDI said in a conference call, Tuesday. "Looking at the market trends most countries are initiating renewable energy businesses which will create a favorable environment for ESS. The U.S. and Europe have expanded their eco-friendly policies, while the government is planning to invest 73 trillion won in its Green New Deal and the low-carbon sector among others, and this is expected to expand demand for ESS in the medium to long term."
Sales in the electronics material business stood at 638.1 billion won, up 6 percent from the previous quarter due to the rise in DRAM. Demand for displays materials including polarized film increased due to a surge in tablet and notebook PC sales, while OLED demand dropped due to low smartphone sales.
Samsung SDI's performance in mid- to large-sized battery sales is expected to get a boost in the latter half of the year due to an expected surge in electric vehicle (EV) demand in Europe.
Samsung Electro-Mechanics
Samsung Electro-Mechanics reported a second-quarter net profit of 45.7 billion won ($38.1 million), down 85.1 percent from the same period last year.
The company posted an operating profit of 96 billion won for the quarter, compared to 163.8 billion won a year ago. Sales also dropped 5.5 percent to 1.81 million won.
The company said in a regulatory filing that it posted an operating profit of 96 billion won, compared with 163.8 billion won last year. Sales fell 5.5 percent to 1.81 trillion won.
