Samsung SDI recorded sales of 3.9356 trillion KRW and an operating profit of 129.9 billion KRW in the third quarter of this year.
According to Samsung SDI on the 30th, third-quarter sales decreased by 30% year-on-year and 4% quarter-on-quarter, while operating profit fell by 72% year-on-year and 46% quarter-on-quarter.
Following the decision to transfer the polarizing film business, Samsung SDI separately classified the related profit and loss as discontinued operations from the third quarter results. Including the polarizing film business, sales amounted to 4.252 trillion KRW, and operating profit was 141.3 billion KRW. Battery segment sales were 3.672 trillion KRW, down 31% year-on-year and 5% quarter-on-quarter. Operating profit was 63.5 billion KRW, down 85% year-on-year and 69% quarter-on-quarter.
Prismatic batteries saw reduced profitability due to weakened demand in the European electric vehicle market and exchange rate effects, but sales grew thanks to expanded supply of P6 batteries in the Americas. The launch of the 'SBB 1.5', which features enhanced energy density and safety, led to significant improvements in both sales and operating profit of ESS (Energy Storage System) batteries. Cylindrical batteries’ performance declined due to a base effect from one-off gains in the previous quarter and reduced operating rates caused by decreased sales for electric vehicles, whereas pouch batteries saw increases in both sales and operating profit driven by new smartphone launches.
Sales in the electronic materials segment reached 263.6 billion KRW, up 0.2% year-on-year and 24% quarter-on-quarter, while operating profit rose 24% year-on-year and 102% quarter-on-quarter to 66.4 billion KRW.
Sales and operating profit improved significantly, centered on high-value OLED materials, while semiconductor materials maintained performance at levels comparable to the previous quarter.
Despite a challenging business environment marked by slowing growth in electric vehicle demand in the third quarter, Samsung SDI laid the foundation for mid- to long-term growth by signing a joint venture contract with GM focused on prismatic premium batteries, securing new orders from major automakers in Europe and Asia, and launching the power-use SBB 1.5.
StarPlus Energy, a joint venture with Stellantis, will begin early operations in December this year, starting the first battery cell mass production in the Americas. Sales of high-value products are also expected to expand with new car launches from major European customers. However, performance improvement is expected to be limited due to inventory adjustments by customers amid slowing demand growth.
ESS batteries are expected to continue strong growth in sales of power-use SBB products in the Americas, while in Europe, sales of power-use SBB products and high-output batteries for UPS (Uninterruptible Power Supply) are increasing, driving performance improvements.
Cylindrical batteries are expected to face continued challenges such as delayed demand recovery. Samsung SDI plans to minimize the impact of demand slowdown through cooperation with major customers and continue efforts for mid- to long-term growth, including premium new product development and entry into the E4Wheeler market. The 46-pi cylindrical battery, scheduled for mass production in early 2025, is currently under consultation with major customers, with visible results expected within the year.
The electronic materials segment anticipates inventory reductions and lower operating rates by customers due to weakening upstream demand. Semiconductor materials will pursue maintaining market share with major customers and new entries such as SOD and EMC materials, while OLED materials will aim for timely market entry aligned with new product launches by key customers.
Choi Yoon-ho, CEO of Samsung SDI, stated, "Despite difficult internal and external business conditions, we have laid the foundation for mid- to long-term growth centered on prismatic premium batteries. Based on differentiated technological competitiveness and top-quality products leading the industry, we will seize new opportunities aligned with the market demand recovery."
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