Samsung SDI, battery maker under South Korea’s Samsung Group, reported record earnings in the second quarter on brisk sales of its EV batteries – especially premium large batteries – and high-value added IT materials.

The company disclosed Friday that it posted a consolidated operating profit of 429.03 billion won ($330.6 million), up 33.1 percent on quarter and 45.3 percent on year, for the April-June period. It was the first time the company’s quarterly operating profit exceeded 400 billion won.

Sales came to its record high of 4.74 trillion won in the quarter, gaining 17.07 percent from the previous quarter and 42.18 percent from a year ago. Net income gained 12.84 percent against the previous quarter and added 41.94 percent from a year earlier to 409.2 billion won.

Shares of Samsung SDI finished down 1.56 percent at 569,000 won on Friday.

Milestone earnings owed to improved profitability in both its energy and electronic materials divisions.

Sales at its energy division reached 4.07 trillion won, up 22.7 percent on quarter and 50.1 percent on year thanks to brisk sales of its medium- and large-sized rechargeable battery sales, including premium products like Gen.5 batteries that enable longer driving ranges for electric vehicles. Sales of energy storage systems (ESS) also surged during the second quarter.

For its small-sized lithium-ion battery business, sales of cylindrical batteries surged on increased EV sales and high-voltage power tool applications while sales of pouch batteries fell due to decreased demand.

Electronic materials division posted 669.2 billion won in sales, down 8.4 percent on quarter, but up 7.5 percent on year. Operating profit gained 17 percent to 184.1 billion won thanks to robust sales of high-value added products. OLED materials’ sales rose thanks to the start of sales for new platforms, and polarizer sales surged due to its diversified product line. Semiconductor revenue remained the same as the previous quarter.

The IT materials and battery company is expected to continue its growth streak in the second half of the year. Its Gen.5 battery sales are especially expected to surge when its second plant in Hungary begins operation and environmental policies will continue to drive up demand for batteries and new ESS products.

By Susan Lee

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