Samsung SDI added Tuesday its 4th quarter earning down 21.6% on year due to decrease demand for batteries used in energy storage system and IT products.

Net profit came to 493.3 billion won in the October December period 2023 compared with 629.2 billion won from a year earlier, the company expressed in a regulatory filing.

The company posted 22.7 trillion won in sales, up 12.8% from a year ago. Company sales fell 6.7% on year to 5.56 trillion won, while operating profit slumped 36.5 percent on year to 311.8 billion won.

Sales down 6.7$ on year to 5.56 trillion won, operating profit slumped 36.5 % on year to 311.8 billion won. The average estimate of net profit by analysis stood at 383.3 billion won.

Shares in Samsung SDI fell 1.19% to close at 347,500 won on the Seoul stock market Tuesday.

For all of 2023, the company posted 22.7 trillion won in sales up 12.8% from a year ago. its operating income for the down 9.7% on year to 1.63 trillion won and net profit edged up 1.3 percent tp 2.06 trillion won.

Demand for automotive batteries remained strong in the 4th quarter of previous year, however sales of ESS products and small batteries faced challenges.

The P6 batteries will mass produced starting january for consumers in Europe and North America, with sales expected to contribute to the company earning from 2nd quarter.

In the electronic material business its sales spike 9.3% on year to 566.5 billion won and operating profit down 35% on year to 85.7 billion won.

Despite worries about slowing demand for electric vehicles, Samsung SDI told it will maintain factory rates in 2024 and proceed with the scheduled expansion of production facilities.

Samsung SD added it plans to initiate mass production of its premium battery product, P6 in the 1st quarter to sales and profits and secure projects for next generation platforms.