LG Innotek Reports Operating Profit of 138 Billion KRW in Q1... 'Earnings Surprise' Despite COVID-19

[Asia Economy Reporter Ki-min Lee] LG Innotek recorded consolidated sales of 2.01 trillion KRW and an operating profit of 138 billion KRW in the first quarter of this year.

This represents a 46.9% increase in sales compared to the same period last year, and a turnaround to operating profit. In the first quarter of last year, LG Innotek posted an operating loss of 11.4 billion KRW. Compared to the previous quarter, sales decreased by 32.2% and operating profit decreased by 34.1%.

An LG Innotek official stated, “Although the first quarter is a seasonal off-season and uncertainty increased due to the spread of COVID-19, sales of differentiated products with global competitiveness, such as semiconductor substrates for 5G and camera modules for smartphones, increased, resulting in favorable performance.”

The Optical Solutions business recorded sales of 1.3343 trillion KRW, a 100% increase compared to the same period last year. Compared to the previous quarter, sales decreased by 41%. Sales of high-performance and high-quality components such as premium smartphone multiple camera modules and 3D sensing modules increased. LG Innotek explained that despite concerns over the global spread of COVID-19, systematic production management allowed stable response to increased demand.

The Substrate Materials business recorded sales of 289.7 billion KRW, up 13% year-on-year and 1% quarter-on-quarter. Sales increased steadily due to semiconductor substrates used in 5G communication chips and tape substrates applied to high-resolution display devices.

The Automotive Components business recorded sales of 283.3 billion KRW, a 4% increase year-on-year. Compared to the previous quarter, sales decreased by 6%. Sales of electric vehicle power modules such as battery management systems (BMS) and high-quality automotive lighting modules such as the flexible surface light module ‘Nexslide’ increased.

This content was produced with the assistance of AI translation services.