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Samsung SDI raises profit on batteries

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By Kim Yoo-chul
  • Published Oct 27, 2010 4:33 pm KST
  • Updated Oct 27, 2010 4:33 pm KST

By Kim Yoo-chul

Samsung SDI has recorded a healthy report in the latest quarter thanks to the rising shipments of electronic components such as value-added batteries and advanced displays.

The improvement in profit comes amid the growing popularity of high-end digital consumer devices that include smartphones and tablet-style PCs, according to Samsung officials.

Samsung SDI supplies small-sized rechargeable batteries to Samsung Electronics and Apple, while the unit is also shipping organic OLED or OLED displays to Samsung Group’s electronics unit via the joint venture ― Samsung Mobile Display (SMD).

The operating profit during the third quarter of this year was 123.8 billion won or $110.2 million ― an increase of 4.6 percent year-on-year, though the company reaped 1.35 trillion won in sales during the July-September period, it said in a regulatory filing to the Korea Exchange (KRX), Wednesday.

``We’ve received increased battery orders from major tablet-PC and smartphone manufacturers. Also orders for plasma panels for three dimensional (3D) televisions have seen a rapid growth,’’ said a company spokesman Seo Hae-su, adding its plasma division sold a quarterly record of 1.7 million.

Seo, however, declined to comment to unveil its customer information over rechargeable batteries.

``With the steady battery demand, the global market for plasma screens will grow to 5 million helped by the rush by television majors to boost their 3D-related businesses,’’ according to Seo.

Samsung is currently partnering with Robert Bosch of Germany to run the 50:50 battery joint venture ― SB LiMotive ― to manufacture lithium-ion batteries for electric vehicles (EVs).

Sources say SDI has been near to announce a sizable battery deal with leading carmakers soon, though SDI officials were mum to confirm this.