[THE INVESTOR] Investment firm Dongbu Securities forecast that Samsung SDI’s continued operating loss would deepen in the July-Sept period due to rising costs for the recent Galaxy Note 7 recall and lackluster growth of its mid- and large-size battery business.

The investment firm anticipated that operating loss in the third quarter would increase to 64.5 billion won (US$58.50 million) down from the previous 26-billion-won estimate.

Despite high expectations on electric vehicles, the business environment for battery firms is not favorable due to heated competition with the participation of some automobile companies in EV battery market and falling profit margins.



The brand image of Samsung SDI, one of the world’s largest smartphone battery makers, has also suffered as its flawed battery was found to be the cause of battery combustion and explosions of the Note 7.

Since Aug. 24, when the first report of the problematic battery surfaced, the shares of the firm dropped nearly 20 percent.

Reeling from the battery fiasco, Samsung Electronics has announced that it would decrease its reliance on the battery business arm of the group and instead opt to diversify its battery supply channels.

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