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March 29, 2024

Samsung SDI struggles amid losses

PUBLISHED : April 27, 2017 - 18:05

UPDATED : April 28, 2017 - 16:47

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[THE INVESTOR] Korean battery maker Samsung SDI said in a regulatory filing on April 27 that it posted an operating loss of 68.3 billion won (US$60.40 million) in the first quarter with its revenue standing at 1.3 trillion won.

“SDI continued to post an operating loss in the first quarter due to investments for beefing up safety measures for batteries,” said a Samsung SDI official, adding “The company will likely make a turnaround in the second quarter when Samsung Electronics’ newest flagship Galaxy S8 will likely see sales growth in earnest.”




Related: 
Samsung SDI’s compensation talks for Note batteries stalled
Samsung SDI suspends expansion plans for Chinese battery plant


A series of reviews on the explosive Galaxy Note 7 last year showed that faulty batteries produced by Samsung SDI and Amperex Technology Ltd. of Hong Kong were the main cause of the fire and explosions of the ill-fated smartphone.

The battery maker has been also hit hard by the Chinese government’s retaliatory policies against Korean companies in the wake of the Seoul’s decision to deploy the US THAAD missile system.

SDI said in a conference call that its plants in Xian, China will be able to ramp up battery production in the second quarter this year thanks to increasing orders from European customers.

The plants in China that roll out electric car batteries have been idle for months as Chinese electric car makers had cut ties with the Korean firm in line with the Chinese government’s escalating retaliatory measures.

By Kim Young-won (wone0102@heraldcorpl.com)

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