SEOUL (Reuters) - Samsung SDI posted a larger-than-expected operating loss in the first quarter due to falling prices and weak sales of plasma screens and batteries, although it swung to a quarterly net profit on one-off gains.

The success of competing liquid crystal display (LCD) technology is pressuring Samsung SDI’s plasma display panel (PDP) business, while falling demand for notebook computers has hurt rechargeable batteries amid a supply glut.
But the South Korean company seems to have turned a corner, with Samsung SDI forecasting a quick earnings recovery in the second quarter on growing sales of plasma panels and batteries.
It said digital broadcasting in the United States and increasing TV sales in China are set to support its PDP sales, while a full recovery in demand for rechargeable batteries could take place in the third quarter.
Samsung SDI reported on Tuesday a 76 billion won ($56.3 million) operating loss in the first quarter to March, larger than an average forecast for a 23.3 billion won loss. Investment in its electric vehicle battery venture with Robert Bosch also weighed.
Quarterly net profit came at 57.6 billion won, beating a forecast for a 27 billion won loss thanks to gains from a revaluation of its mobile display business, which was spun off into a joint venture with Samsung Electronics.
Consolidated first-quarter sales were 1.02 trillion won, above a forecast of 890 billion won.
Samsung SDI competes with Japan’s Panasonic Corp. and home rival LG Electronics in plasma screens. It trails Japan’s Sanyo Electric in rechargeable batteries.
Shares at Samsung SDI fell 1.6 percent as of 0507 GMT, compared with the wider market’s .KS11 2.1 percent loss. The stock advanced 57 percent so far this year through Monday, leading the KOSPI’s 19 percent rise.
($1=1348.9 Won)