Samsung Biologics will release its third-quarter earnings on the 21st. Amid forecasts that losses from the first strike, triggered by labor-management conflicts, will not be significant, the union's plan to apply additional pressure on the company through a second collective action appears to be shaken by the court's ruling prohibiting strikes in key processes.
According to the Financial Supervisory Service's electronic disclosure system on the 21st, Samsung Biologics will announce its third-quarter results today. The losses from the first full-scale strike conducted last May due to labor-management conflicts are expected to be reflected in this quarter's performance.
The securities industry expects the company to post solid results despite an estimated loss of approximately 150 billion won from its first-ever full-scale strike since its founding, as well as short-term negative factors such as a decline in the won-dollar exchange rate, due to revenue contributions from new production facilities including Plant 5 and the Rockville plant in the United States. The consensus estimate for Q3 earnings this year is projected at 1,356.9 billion won in revenue and 611.4 billion won in operating profit. This compares with 1,257.5 billion won in revenue and 633.3 billion won in operating profit (on a standalone basis) recorded last year, indicating that revenue is expected to rise while operating profit will see a slight decrease.
The union's additional strike, which had been identified as a "fuse" for future performance, appears to have lost momentum following recent court rulings. Previously, on the 16th, the First Civil Division of the Incheon Branch of the Seoul High Court ruled in favor of the company in an appeal regarding a preliminary injunction against labor disputes filed by Samsung Biologics, granting the injunction for all nine processes applied for by the company. With the scope of the strike ban effectively expanded to the entire production process, it is now unavoidable that the union must revise its plan to pressure the company through "widespread losses via production stoppage."
In fact, the union announced on the 20th in a statement that "strategic changes are necessary in light of the court's decision" and postponed the second full-scale strike scheduled for the 26th. Following the court's ruling, the union requested the resumption of negotiations with the company on the 19th and plans to hold an extraordinary general meeting on the 22nd to discuss current issues, including securing a dispute fund.
The website where the union had been posting strike-related notices and surveys, and investigating participation in the second general strike, is currently closed, displaying only a notice that the "page is under maintenance." According to media reports, as of the afternoon of the day of the court ruling, 1,442 members (36%) out of a total of 4,010 union members had expressed their intention to participate, which was significantly lower compared to the first general strike (approximately 2,800 participants). An industry official said, "With the effectiveness of the strike weakened by the court's preliminary injunction decision and low member participation, the burden on the union leadership appears to have increased further."
in THEBIO
