Samsung SDI has posted operating profits of 103.8 billion won and revenues of 2.5586 trillion won in the second quarter of the year.
It is a fall of 34% and increase of 6.4%, respectively.
Still, operating profits were higher than South Korean analysts’ consensus of 60 billion won.
The battery business posted revenues of 1.9187 trillion won. Samsung SDI said the COVID-19 pandemic has caused demand for mid- to large-sized batteries for automobiles decline but those for energy storage systems (ESS) rose, especially in Americas. Demand for polymer batteries were weak from lowered sales of flagship smartphones, the company added.
The battery materials business posted sales of 638.1 billion won. Materials for server DRAM saw increased sales as well as polarized films used in display thanks to increased sales of tablets and notebooks during the quarter. Materials for organic light emitting diode (OLED) saw sales decline due to lower demands from smartphones.
Samsung SDI expects profitability and sales of mid- to large-sized batteries in the second half of 2020. Electric vehicles (EV) are expected to sales rise in Europe thanks to expanded policy to back them ESS will continue to draw demand.
E-bikes, e-scooters and other micro mobility devices will help sales of small-sized batteries. Demand for polymer batteries will recover in the second half thanks to new smartphone launches, the company added.
Battery materials business is also expected to see profits and sales rise in the second half of the year, Samsung SDI said. Demand from semiconductors will continue. Demand for OLED materials will rise thanks to new smartphone launches. Sales of Polarize films, however, will decline from slower sales of IT devices.