Samsung SDI swings to Q2 profit on battery sales, US tax credit

Samsung SDI, a major Korean battery manufacturer, said Thursday it swung to a profit in the second quarter from a year earlier, driven by higher battery sales and a U.S. tax credit.

In the three months that ended in June, the company posted a net profit of 471.6 billion won ($327 million), shifting from a net loss of 166.7 billion won in the same period last year, it said in a regulatory filing.

The company attributed the turnaround to increased shipments of electric vehicle (EV) batteries to Europe and stronger demand for high-voltage batteries used in power tools, uninterruptible power supply (UPS) systems and battery backup units (BBUs).

The company also said a sizeable tax credit under the Advanced Manufacturing Production Credit (AMPC) program of the U.S.

Inflation Reduction Act helped boost quarterly earnings.

Samsung SDI also swung to an operating profit of 203.8 billion won in the second quarter from an operating loss of 397.8 billion won a year earlier.

Sales rose 18.5 percent to 3.76 trillion won from 3.18 trillion won during the cited period.

For the first six months of the year ...