Operating Profit Up 21.12% Year-on-Year
Sales at 4.3336 Trillion KRW, Net Profit at 138.5 Billion KRW
Strong Performance Despite Weak Front-End IT Demand
LG Innotek announced on the 24th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 176 billion KRW, an increase of 21.12% compared to the same period last year.
Sales amounted to 4.3336 trillion KRW, a decrease of 0.97% compared to the same period last year. Net profit increased by 66.26% to 138.5 billion KRW.
Despite seasonal off-season and weak front-end IT demand due to the global economic downturn, profitability improved thanks to supply focused on high-performance premium products, active internal cost improvement activities, and favorable exchange rate effects.
By business segment, the Optical Solutions business recorded sales of 3.5142 trillion KRW, down 1% from the same period last year. Despite the seasonal off-season and weak smartphone demand, sales remained at the same level as the previous year due to supply centered on high-performance camera modules.
Sales in the Substrate Materials business were 328.2 billion KRW, down 1% from the same period last year. Stable sales were maintained through expanded supply of components for large displays such as Chip on Film (COF).
The Automotive Components business recorded sales of 491.2 billion KRW, down 2% from the same period last year. Despite weak automobile demand, quarterly profit was achieved due to sales growth of vehicle lighting components and active cost improvement activities.
The Automotive Components business is improving profitability through product and customer structure optimization, strengthening global supply chain management (SCM) capabilities, and development focused on platform models (versatile products minimizing customization).
Park Ji-hwan, CFO of LG Innotek, said, "We will continue to grow our profit base by strengthening quality and price competitiveness through digital manufacturing process innovation and production operation efficiency, and by focusing on high value-added products." He added, "We are rapidly building a business structure for sustainable growth, led by future mobility core components such as sensing, communication, and lighting modules, as well as high value-added semiconductor substrates like FC-BGA."
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