Samsung SDI 1Q Net Profit Up 42.3% On Strong Battery Business, Equity Investment Gains

SEOUL -(Dow Jones)- Samsung SDI Co. (006400.SE) said Friday its first-quarter net profit rose 42.3% from a year earlier, largely helped by higher equity investment gains from its display joint venture, Samsung Mobile Display, and strong performance of its rechargeable battery operations.

The Korean maker of rechargeable batteries and plasma displays made a net profit of KRW112 billion ($99 million) in the three months ended March 31, versus KRW78.7 billion a year earlier.

Samsung SDI, which supplies rechargeable batteries to global technology giants, including Samsung Electronics Co. and Apple Inc. (AAPL), said its operating profit rose 11.1% to KRW67 billion from KRW60.3 billion.

Sales rose 13.9% to KRW1.38 trillion from KRW1.21 trillion, helped by brisk demand for its rechargeable batteries, mainly used for high-margin mobile devices, such as smartphones and tablet computers.

Analysts expect the Korean firm to continue benefiting from brisk sales of its rechargeable polymer batteries for new mobile devices.

"From the second quarter, the average selling price of its rechargeable batteries is expected to continue rising while its profit margin is also likely to improve further on new iPad sales and (Samsung Electronics') new Galaxy S smartphones," said Dongbu Securities in a recent report.

-By Jung-Ah Lee, Dow Jones Newswires; 822-3700-1907; jung-ah.lee@dowjones.com

(END) Dow Jones Newswires

April 27, 2012 01:08 ET (05:08 GMT)

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