LG Innotek Q1 Operating Profit 346.8 Billion KRW... Up 97.3% YoY
[Asia Economy Reporter Jeong Hyunjin] LG Innotek recorded its highest-ever sales and operating profit for the first quarter, driven by increased component sales due to expanding smartphone demand.
On the 29th, LG Innotek announced that its first-quarter sales amounted to 3.0703 trillion KRW, with an operating profit of 346.8 billion KRW. Compared to the same period last year, sales increased by 55.6% and operating profit by 97.3%. Compared to the previous quarter, sales decreased by 20.1%, while operating profit rose by 1.3%.
LG Innotek explained that despite the first quarter generally being a seasonal low and the growing uncertainties caused by COVID-19, continued smartphone demand drove performance, led by high-performance products such as triple cameras for smartphones and 3D sensing modules. Additionally, growth in 5G communication semiconductors, mobile and display substrates, and power components for electric vehicles supported the increase in results.
By business segment, the Optical Solutions division recorded sales of 2.2593 trillion KRW, a 69% increase year-on-year but a 26% decrease quarter-on-quarter. The Substrate Materials division posted sales of 358.5 billion KRW, up 24% year-on-year and 6% quarter-on-quarter. This growth was sustained by steady sales of 5G communication semiconductor substrates and expanded supply of new models of chip-on-film (COF) for mobile and display applications.
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The Automotive Components division recorded sales of 334.4 billion KRW, an 18% increase year-on-year but a 2% decrease quarter-on-quarter. Sales of power components for electric vehicles, such as battery management systems (BMS) and DC-DC converters, increased due to the growth of the electric vehicle market. Additionally, components for autonomous driving, including cameras for advanced driver assistance systems (ADAS) and communication modules, showed steady performance improvements. An LG Innotek official stated, "The Automotive Components division is improving profitability through continuous internal innovation activities, such as enhancing order quality."
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