"Expectations for Market Growth Across All Sectors Including Car Batteries"
[Asia Economy Reporter Jeong Hyunjin] Samsung SDI surpassed annual sales of 11 trillion won last year, setting a record high. Fourth-quarter sales also reached a quarterly record, and annual operating profit increased significantly by more than 45% to around 670 billion won compared to the previous year.
On the 28th, Samsung SDI announced through its annual management performance report that its annual sales increased by 11.9% year-on-year to 11.2948 trillion won. Operating profit rose 45.2% from the previous year to 671.3 billion won, and net profit was provisionally estimated at 631 billion won, up 56.8%.
Looking at the fourth-quarter results, sales increased by 15.3% year-on-year to 3.2514 trillion won, and operating profit surged by 1124.9% during the same period to 246.2 billion won. Net profit turned positive at 341.9 billion won.
Samsung SDI stated that although sales of small-sized batteries decreased compared to the previous quarter due to a decline in pouch battery sales, automotive batteries continued to show significant sales growth influenced by eco-friendly policies such as increased electric vehicle subsidies in Europe in the second half of the year, and energy storage systems (ESS) sales increased mainly due to large projects in the Americas.
In the energy (battery) sector, fourth-quarter sales rose 10.3% from the previous quarter to 2.6292 trillion won, while operating profit decreased by 15.3% quarter-on-quarter to 117 billion won. The company expects that electric vehicle batteries have entered a profit-turning structure starting from the fourth quarter of last year and anticipate profitability this year.
The electronic materials division’s fourth-quarter sales decreased 11.6% from the previous quarter to 622.2 billion won, while operating profit remained the same at 129.2 billion won. The company explained that sales declined due to the seasonal off-season for polarizing films and inventory adjustments by semiconductor customers, but supply of organic light-emitting diode (OLED) materials expanded for new flagship smartphones.
Samsung SDI stated that market growth is expected this year across all sectors including electric vehicle batteries, ESS, small-sized batteries, and semiconductor and OLED materials. The electric vehicle market is rapidly growing due to eco-friendly policies by governments in Europe, the United States, and China, and demand for ESS is also expected to expand. Small-sized batteries are also anticipated to rebound as demand for mobility (transportation) applications increases and the housing market recovers.
Samsung SDI explained, "In the first quarter of this year, automotive battery sales are expected to decline due to the seasonal off-season, while ESS sales are expected to continue expanding mainly in the Americas. Small-sized battery sales are expected to slightly increase compared to the previous quarter due to rising demand for power tools."
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