LG Innotek Q2 Operating Profit 152 Billion KRW... 178% Increase YoY
[Asia Economy Reporter Kim Hyewon] LG Innotek announced on the 29th that its consolidated operating profit for the second quarter increased by 178.3% year-on-year to 151.9 billion KRW. During the same period, sales rose by 55.9% to 2.3547 trillion KRW.
An LG Innotek official explained, "Despite the seasonal off-season and increased uncertainty due to COVID-19 in the second quarter, high-performance products such as triple cameras for smartphones and 3D sensing modules drove the performance," adding, "Sales of semiconductors for 5G communications, substrates for displays, and automotive cameras and communication modules increased, supporting the results."
By business segment, the Optical Solutions division posted sales of 1.5541 trillion KRW, up 67% compared to the same period last year. However, sales decreased by 31% compared to the previous quarter. Despite the seasonal off-season, steady demand for smartphone camera modules continued, and sales centered on high value-added products such as triple cameras and 3D sensing modules improved performance compared to the same period last year.
The Substrate Materials business recorded sales of 361.2 billion KRW, a 22% increase year-on-year. Sales increased by 1% compared to the previous quarter. Sales grew due to strong demand for semiconductor substrates for 5G communications and expanded production capacity, and growth continued as supply of display-related products such as chip-on-film (COF) and photomasks increased due to strong TV sales.
The Automotive Components business recorded sales of 326.2 billion KRW, up 40% year-on-year but down 2% from the previous quarter. Sales expansion was driven by cameras for advanced driver assistance systems (ADAS), communication modules, and other parts for electric vehicles and autonomous driving.
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Despite challenging market conditions due to global supply issues of automotive semiconductors and other materials, the Automotive Components business is focusing on improving profitability through continuous internal innovation activities such as enhancing order soundness.
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