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Samsung SDI returns to operating profit as storage demand grows

Samsung SDI earned operating profit of 407.8 billion won in the third quarter, reversing a year-earlier loss of 591.3 billion won. The South Korean battery maker attributed the improvement to energy storage and backup batteries, among other businesses. It reported more than 60 gigawatt-hours of storage battery orders this year.

Economics & Markets··Evening
Side view of an open energy storage battery cabinet on a factory roller conveyor, showing stacked battery modules and thick insulated cables.

Operating loss turns into profit

Samsung SDI returned to operating profit in the third quarter after a loss a year earlier.[1], [2]

South Korean battery maker Samsung SDI earned operating profit of 407.8 billion won in the third quarter, reversing a year-earlier operating loss of 591.3 billion won. Operating profit had been 203.8 billion won in the preceding quarter. The result was the highest since the third quarter of 2023.[1]

Revenue increased 52.6 per cent from a year earlier and 20.9 per cent from the preceding quarter. The battery business generated revenue of 4.41 trillion won and operating profit of 361.9 billion won. Management linked the improvement to growth in energy storage systems, backup batteries for data centres and cylindrical batteries.[1]

Storage orders exceed 60 gigawatt-hours

Samsung SDI said it had won more than 60 gigawatt-hours of energy storage battery orders this year. It plans to use its Synergy Cells facility in Indiana, in the US, as a storage battery production hub. The company began mass production of lithium iron phosphate cells at its US StarPlus Energy plant in October.[1]

Management expects fourth-quarter profitability

The return to quarterly operating profit accompanies plans for further conversions of US production lines. Management expects storage and small batteries to support continued profitability in the fourth quarter. It anticipates stronger European electric-vehicle demand while weakness in the US market persists.[1]

References

  1. News sourceSAMSUNG SDISamsung SDI returns to profit as revenue rises 52.6 per cent↩1↩2↩3↩4↩5
  2. News sourceYonhapSamsung SDI returns to quarterly operating profit↩
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