LG Innotek Reports Q2 Earnings Surprise with Operating Profit of 42.9 Billion KRW, Up 128.7% YoY (Update)

[Asia Economy Reporter Dongwoo Lee] LG Innotek announced on the 22nd that its consolidated operating profit for the second quarter of this year was tentatively estimated at 42.9 billion KRW. This represents a 128.7% increase compared to the same period last year.

Sales reached 1.5399 trillion KRW, a 1.2% increase compared to the same period last year. Net profit turned positive at 7.6 billion KRW. LG Innotek's second-quarter performance this year exceeded the securities firms' average estimates of 1.4709 trillion KRW in sales and 32 billion KRW in operating profit.

By business division, the Optical Solutions division recorded sales of 929.6 billion KRW, a 12% increase year-on-year but a 30% decrease quarter-on-quarter. The expansion of the product lineup, including high-resolution camera modules and 3D sensing modules, along with stable production management, resulted in better-than-expected performance despite market concerns.

The Substrate Materials division posted sales of 295.7 billion KRW, up 7% year-on-year and 2% quarter-on-quarter. Globally leading products such as semiconductor substrates for communications, tape substrates applied to high-resolution display devices, and photomasks continued their solid growth from the previous quarter.

The Automotive Components division recorded sales of 232.9 billion KRW, down 12% year-on-year and 18% quarter-on-quarter. LG Innotek analyzed that the decline was largely due to reduced demand for automotive components amid the global automotive market downturn caused by the spread of COVID-19. However, sales of vehicle power modules, including battery management systems (BMS) and DC-DC converters, which are key components for electric vehicles, increased.

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