In the third quarter of 2022, Samsung SDI recorded sales of 5.368 trillion KRW and an operating profit of 565.9 billion KRW. Both sales and operating profit achieved the highest results in history, marking the first time surpassing 5 trillion KRW in revenue and 500 billion KRW in operating profit. Additionally, the energy division recorded a double-digit operating profit margin.
Compared to the same period last year, sales increased by 1.9282 trillion KRW (56.1%) and operating profit rose by 192.4 billion KRW (51.5%). Compared to the previous quarter, sales increased by 627.2 billion KRW (13.2%) and operating profit grew by 136.9 billion KRW (31.9%).
As a result, Samsung SDI’s cumulative performance for the third quarter has surpassed last year’s annual figures. This achievement is attributed to the company’s focus on a profitability-oriented qualitative growth strategy, even amidst a global economic downturn and inflation driving up raw material costs.
The energy division’s sales amounted to 4.834 trillion KRW, reflecting a year-on-year increase of 76.4% and a quarter-on-quarter increase of 18.7%. The operating profit reached 484.8 billion KRW, marking a 140.2% increase compared to the previous year and a 98.0% increase from the last quarter, with an operating profit margin of 10.0%.
Compared to the last quarter, the large and medium-sized battery division showed significant performance improvement. Automotive batteries saw an increase in sales, expanding high-value products sales such as the P5 (Gen.5) amid solid demand for premium electric vehicles, which also improved profitability. ESS batteries reflected the rise in raw materials in their price and improved profitability as sales expanded in Europe.
Small batteries saw growth in sales centered around high-value products while improving profitability.
Sales of round batteries for electric vehicles and high-output power tools increased, driving performance improvement.
In the electronic materials division, sales and profitability declined compared to the last quarter due to weak demand from downstream industries. Sales amounted to 534 billion KRW, which is a decrease of 23.6% year-on-year and 20.2% quarter-on-quarter. Operating profit was 81.1 billion KRW, down 52.8% compared to the previous year and down 55.9% from the last quarter.
While sales of polarizing films decreased due to sluggish demand from downstream industries such as TVs, the start of supply for new platforms in OLED materials and increased sales of semiconductor materials helped maintain relatively good profitability.
Samsung SDI is expected to continue its growth trend in the fourth quarter of this year.
In the fourth quarter, large and medium-sized batteries are anticipated to see increased sales based on seasonal effects.
Automotive batteries are expected to expand sales with new models featuring the P5 (Gen.5) batteries coming to market, alongside the year-end demand increase, while they will continue to pursue orders for next-generation platforms such as the P6 (Gen.6) batteries and 46mm diameter batteries. Sales of ESS batteries are expected to increase, focusing on power applications in North America.
Sales of small batteries are expected to expand, especially centered around round batteries for electric vehicles. Round batteries for power tools will minimize the impact of demand slowdown based on long-term supply contracts, and pouch-type batteries for IT applications are expected to see new product entries from major customers.
For the fourth quarter, the electronic materials division aims to expand sales, particularly in display materials.
Sales of OLED materials are expected to increase with the full-scale production of new platform products, and semiconductor materials are anticipated to achieve robust sales due to expansions from major customers. While sales of polarizing films decreased, customer diversification and expectations of demand growth from next year’s new TV releases alongside the development of high-value products and supply of polarizing films for OLEDs are expected to improve sales and profitability compared to the third quarter.
Written by Lee Sang-jin daedusj@autodiary.kr