LG Innotek Q2 Operating Profit 289.9 Billion Won... 90.8% Increase Due to 'Smartphone' Effect (Comprehensive)

Strong Sales of High-Performance Camera Modules for Smartphones
Off-Season Q2 Also Shows Resilience

[Asia Economy Reporter Park Sun-mi] LG Innotek announced that despite the seasonal off-season and challenging market conditions, its sales and operating profit increased by 57.2% and 90.8%, respectively, compared to the same period last year, driven by strong sales of high-performance camera modules for smartphones.

On the 27th, LG Innotek reported that in the second quarter, under Korean International Financial Reporting Standards (K-IFRS), it recorded sales of 3.7026 trillion KRW and operating profit of 289.9 billion KRW. Compared to the same period last year, sales increased by 57.2% and operating profit by 90.8%. However, compared to the previous quarter, sales decreased by 6.3% and operating profit by 21.0%.

A company official stated, “The second quarter is typically a seasonal off-season, and the market conditions were unfavorable due to multiple adverse factors such as decreased demand in front-end industries for home appliances and IT products caused by the global economic downturn, rising prices, and the prolonged Ukraine war.”

He added, “Nevertheless, strong sales of high-performance camera modules for smartphones continued, and steady demand and expanded production capacity for semiconductor substrates used in 5G communications drove the significant year-on-year performance increase. Additionally, sales of automotive communication modules, motors, and other parts for electric and autonomous vehicles also continued to grow despite difficult conditions.”

The Optical Solutions Business recorded sales of 2.8035 trillion KRW, a 72% increase compared to the same period last year. This was due to steady demand for new customer models focused on high-value-added products such as multiple camera modules and 3D sensing modules, despite the seasonal off-season. Sales decreased by 9% compared to the previous quarter.

The Substrate Materials Business recorded sales of 451.7 billion KRW, a 25% increase compared to the same period last year. Strong demand and expanded production capacity centered on semiconductor substrates for 5G communications, such as substrates for Radio Frequency System-in-Package (RF-SiP) and millimeter-wave antenna-in-package (AiP), led to improved performance.

Despite concerns over deteriorating performance due to decreased demand in front-end industries such as TVs and IT products, the Display Components segment recorded solid results, with sales increasing by 9% compared to the previous quarter. The Automotive Components Business recorded sales of 330.5 billion KRW, up 32% year-on-year and 5% quarter-on-quarter. Increased supply of communication modules, motors, and other parts for electric and autonomous vehicles sustained sales growth for five consecutive quarters.

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