'Surprising Performance' Despite 'Seasonal Off-Season'
Operating Profit at 151.7 Billion Won... Net Profit Also 98.9 Billion Won
LG Innotek recorded a 'surprise performance' in the second quarter of this year, overcoming the 'seasonal off-season.'
LG Innotek announced on the 24th that it posted sales of 4.5553 trillion KRW and an operating profit of 151.7 billion KRW in the second quarter of this year. This represents an increase of 16.6% and 726.2%, respectively, compared to the same period last year. Net profit also rose significantly to 98.9 billion KRW. In particular, sales were the highest ever recorded for the second quarter.
This is interpreted as being influenced by the recovery in smartphone demand. LG Innotek stated, "Despite the seasonal off-season, front-end information technology (IT) demand improved, leading to increased sales in the Optical Solutions and Substrate Materials divisions compared to the same period last year," and added, "Profitability improved thanks to the expansion of high value-added product supply and active internal cost improvement activities."
By business division, all LG Innotek divisions posted strong results. The Optical Solutions division, responsible for the camera module business, recorded sales of 3.6803 trillion KRW, up 19% from the same period last year, due to the expansion of high-performance camera module supply. The Substrate Materials division, in charge of the semiconductor substrate business, posted sales of 378.2 billion KRW, a 13% increase. This is believed to be due to increased supply of semiconductor substrates for smartphones, such as RF-SiP, driven by improved front-end smartphone demand.
Additionally, the Automotive Components division, which handles vehicle parts, achieved sales of 496.7 billion KRW, up 2%, as vehicle communication components for autonomous driving and advanced driver assistance systems (AD/ADAS) performed well.
Park Ji-hwan, LG Innotek’s Chief Financial Officer (CFO), stated, "We will continue to enhance product competitiveness by driving digital manufacturing process innovation and production operation efficiency, and steadily pursue profit-based growth by strengthening businesses centered on high value-added products."
He added, "We will accelerate the advancement of our business structure for sustainable growth by focusing on core automotive components such as sensing, communication, and lighting modules, as well as high value-added semiconductor substrates like flip chip ball grid array (FC-BGA)."
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