Seoul: Samsung SDI Co. reported a sharp decline in its third-quarter net profit, heavily impacted by sluggish sales of electric vehicle (EV) batteries and factors related to U.S. tariffs. The company stated that the net profit for the July-September period was 5.7 billion won (US$4 million), marking a significant 97.5 percent decrease from the previous year, as detailed in their regulatory filing.
According to Yonhap News Agency, Samsung SDI experienced an operating loss of 591.3 billion won for the third quarter, contrasting with a profit of 129.9 billion won recorded a year earlier. The company's sales also saw a downturn, decreasing by 22.5 percent to 3.05 trillion won. The decline in earnings was attributed to weak EV battery sales and the effects of Washington's new tariff policies affecting the energy storage system (ESS) battery sector.
Despite the challenging business environment, Samsung SDI reported making progress by actively promoting the sales of EV and ESS batteries during this period. The company revealed that it has secured multiple supply contracts with global automotive groups, totaling over 110 Gigawatt hours (GWh), along with participation in a significant government-led ESS supply project.
Looking forward to the fourth quarter, Samsung SDI anticipates improved earnings driven by a recovery in both the European EV and U.S. ESS markets. The company plans to focus on strengthening its capabilities in the ESS market, enhancing its presence in the EV sector, and improving operational efficiency.
Samsung SDI, noted as the only prismatic battery supplier among non-Chinese battery manufacturers, expects its competitiveness in the U.S. ESS market to grow, fueled by the increasing preference for prismatic batteries due to their safety and high energy density. Meanwhile, Samsung SDI's shares were trading at 279,000 won at 10:21 a.m., showing a 2.11 percent decrease from the previous session, coinciding with the release of the third-quarter report during market hours.