Synopsis
Samsung SDI, the South Korean battery manufacturer, reported a net loss for Q4 due to reduced electric vehicle sales. The company faced significant financial challenges as it adjusted to market shifts and economic downturns.Key Takeaways
- Samsung SDI announced a net loss of 242.7 billion won in Q4.
- Sales of EV batteries decreased significantly.
- The company is expanding its U.S. operations with new battery plants.
- Net income for 2024 plummeted by 72.1%.
- Samsung SDI is strengthening partnerships with major automakers.
Seoul, Jan 24 (NationPress) Samsung SDI, a leading battery manufacturer from South Korea, announced on Friday that it experienced a net loss in the fourth quarter compared to the previous year, primarily due to a decline in electric vehicle (EV) sales.
For the quarter ending on December 31, Samsung SDI reported a net loss of 242.7 billion won ($168.9 million), a significant decrease from the net profit of 493.3 billion won recorded a year earlier, according to a regulatory filing cited by the Yonhap news agency.
This financial downturn is linked to a drop in battery sales for EVs and power tools as clients adjust their stock levels amid an economic downturn, the company disclosed.
Both EV manufacturers and battery suppliers are encountering weak sales due to the EV “chasm”, a phenomenon observed prior to the broader acceptance of EVs.
Moreover, Samsung SDI reported an operating loss of 256.7 billion won in the fourth quarter, contrasting with an operating profit of 295.3 billion won from the previous year.
Sales decreased by 28.8%, dropping to 3.75 trillion won from 5.27 trillion won during the same timeframe.
Despite the challenges posed by the EV chasm, the firm has intensified its collaboration with major automakers in the United States, recognized as the leading automobile market globally.
Through its alliance with Stellantis N.V., Samsung SDI has initiated operations at its first U.S. battery facility located in Indiana, while a second plant is currently under construction.
Additionally, it has joined forces with General Motors Co. to establish an EV battery production site also in Indiana, with plans to commence operations by 2027.
In total, for the year 2024, net income fell by 72.1%, dropping to 575.5 billion won from 2.06 trillion won the year before.
The operating profit saw a decline of 76.5% year-on-year, reaching 363.3 billion won, while sales decreased by 22.6%, amounting to 16.59 trillion won.