[THE INVESTOR] Samsung SDI said on Jan. 24 it suffered an operating loss of 926.3 billion won (US$794 million) in 2016, a 246.3 percent on-year plunge, largely due to the discontinuation of its sister firm Samsung Electronics' Galaxy Note 7.
The total annual revenue was 5.2 trillion won, up 5 percent from a year ago.
During the October-December period, it posted an operating loss of 58 billion won, up 54.47 percent from a year earlier, while the quarterly sales of the firm stood at 1.3 trillion won, up 3.6 percent year-over-year.
The firm attributed the profit drop to the ceased sales of the Note 7 last year. Faulty batteries produced by Samsung SDI and Hong Kong-based ATL have been found to be the main cause of the overheating and explosions of the smartphone, according to the results of Samsung Electronics’ months-long investigation.
SDI’s other businesses including those for energy storage systems and display materials saw profit growth, according to the firm.
The Korean battery firm, along with the Hong Kong company, will continue to supply batteries for Samsung Electronics’ flagship smartphone models, including the upcoming Galaxy S8.
The shares of SDI closed at 110,000 won, down 3.29 percent, on Jan. 24
By Kim Young-won (firstname.lastname@example.org)