Samsung SDI said on April 30 its first-quarter operating profit jumped 65 percent from a year ago on the back of lithium-ion batteries for electric vehicles, but sluggish domestic demand for its energy storage system moderated its revenue.
The battery-making unit of Samsung Electronics said its operating income stood at 119 billion won ($102 million) in the January-March period, compared with an operating income of 72 billion won a year earlier.
Its sales rose 20.7 percent on-year to 2.3 trillion won, but its net profit tumbled 64 percent to 58 billion won over the period due to losses from its equity ties with Samsung Display. The battery maker holds about a 15 percent stake in Samsung’s panel making unit.
Samsung SDI said strong sales of EV batteries in Europe, as well as small batteries used in electronic devices and electric motorcycles, boosted its quarterly profit.
The firm supplies battery packs for BMW’s EVs and Harley-Davidson’s electric motorcycles.
A sharp drop in ESS demand in the domestic market, however, weighed on its overall profits amid an ongoing investigation into fires that broke out at ESS facilities of LG Chem, a major battery maker, last year.
Samsung SDI was upbeat about its second-quarter earnings on the back of rising demand for EV batteries and ESS in overseas markets, including the United States.
By Ram Garikipati and newswires (firstname.lastname@example.org)