Samsung SDI Q3 net income shifts to profit of 342.2 billion won

Samsung SDI, a major Korean battery manufacturer, said Thursday its third quarter net profit surged from a year earlier, driven by increased energy storage system (ESS) battery orders.

Net profit for the three months ended September surged to 342.2 billion won ($255.3 million) from 5.7 billion won in the same period last year, the company said in a regulatory filing.

"Long-term contracts to supply ESS solutions to U.S. customers were among the factors supporting our quarterly results," a company official said.

The company swung to an operating profit of 407.8 billion won in the third quarter from an operating loss of 591.3 billion won a year earlier.

Sales rose 52.6 percent to 4.68 trillion won from 3.07 trillion won during the cited period.

From January to September, the company swung to a net income of 869.9 billion won from a net loss of 377 billion won in the year-ago period.

It also shifted to an operating profit of 456 billion won from an operating loss of 1.42 trillion won, while sales climbed 27 percent to 12.2 trillion won from 9.6 trillion won.

Samsung SDI expects its earnings recovery to continue in the fourth quarter, supported by additional ESS battery orders.

In its ESS business, the company said it will continue to strengthen its local supply chain in the United States while expanding mass production of prismatic lithium iron phosphate (LFP) batteries for ESS applications.

Yonhap