SK On's Q2Y24 Losses KRW 460.1 Billion... Sales Are Halved

[Korea Financial Times, Gwak, Ho Ryung] SK Innovation announced on the 1st that it recorded sales of 1.5535 trillion won and operating loss of 460.1 billion won in the battery business (SK On) in the second quarter of this year.

Sales decreased by 130 billion won from the first quarter of this year, and the deficit increased by 130 billion won.

Compared to the second quarter of last year, when sales reached an all-time high (3.6961 trillion won), it decreased by 2.1426 trillion won. Operating loss also increased 3.5 times from 131.5 billion won to 460.1 billion won despite the increase in the U.S. IRA tax benefits.

Regarding the reason for the widening deficit, SK On CFO Kim Kyung-hoon said, "The factory utilization rate increased due to tight inventory management, which increased the burden of fixed costs per unit," adding, "It was also affected by the start of the new plant in Hungary's Ivancsa in the second quarter."

Kim Jin-won, CFO of SK Innovation, said, "In order to secure physical strength for the upcoming electric vehicle era, we intend to secure stable cash flow through the merger of SK On, SK Trading International and SK Enterm."

(Note)
The term "EV Chasm" refers to the gap or obstacles in the adoption and acceptance of electric vehicles (EVs). This concept is based on the "chasm" theory, which explains the gap between early adopters and the mainstream market when new technologies or products are introduced.

Gwak, Ho Ryung (horr@fntimes.com)