SEOUL — Samsung SDI, a South Korean battery maker, said on Friday it swung to a net loss in the fourth quarter from a year earlier due to a slowdown in electric vehicle (EV) sales.
In the three months ended on December 31, Samsung SDI shifted to a net loss of 242.7 billion won ($168.9 million) from a net profit of 493.3 billion won a year ago, the company said in a regulatory filing, reports Yonhap news agency.
The net result is attributable to decreased sales of batteries for EVs and power tools as customers adjust their inventories amid an economic slowdown, the company said.
EV makers and battery firms are suffering sluggish sales due to the EV "chasm," which is occurring before the widespread adoption of EVs.
Samsung SDI also swung to an operating loss of 256.7 billion won in the fourth quarter from an operating profit of 295.3 billion won a year ago.
Sales fell 28.8 per cent to 3.75 trillion won from 5.27 trillion won during the cited period.
Despite the EV chasm, the company has stepped up its partnership with global carmakers in the United States, the world's most important automobile market.
Under partnership with Stellantis N.V., Samsung SDI began operations of its first U.S. battery plant in Indiana, with the second plant still under construction.
It has also partnered with General Motors Co. to build an EV battery facility also in Indiana with an aim to start operations in 2027.
For the entire 2024, net income plunged 72.1 per cent to 575.5 billion won from 2.06 trillion won the previous year.
Operating profit dropped 76.5 per cent on-year to 363.3 billion won, while sales were down 22.6 per cent at 16.59 trillion won.