LG Innotek's Q3 Operating Profit Rises 32.5% to 444.8 Billion Won Driven by New Model Mass Production (Comprehensive)

Q3 Sales of 5.3874 Trillion KRW, Operating Profit of 444.8 Billion KRW

[Asia Economy Reporter Park Sun-mi] LG Innotek succeeded in achieving solid third-quarter results by focusing on new products and high value-added products despite the uncertain global economic environment.

LG Innotek announced on the 26th that it recorded sales of 5.3874 trillion KRW and operating profit of 444.8 billion KRW in the third quarter of this year. Compared to the same period last year, sales increased by 41.9% and operating profit by 32.5%. Compared to the previous quarter, sales and operating profit rose by 45.5% and 53.4%, respectively.

The Optical Solutions business recorded sales of 4.4395 trillion KRW, a 48% increase compared to the same period last year. As supply for customers' new models began in earnest, sales increased centered on high value-added products such as multi-camera modules for smartphones and 3D sensing modules. Sales increased by 58% compared to the previous quarter.

The Substrate Materials business recorded sales of 435.6 billion KRW, a 3% increase compared to the same period last year. Sales of semiconductor substrates for 5G communications continued to rise due to expanded supply for customers' new models. On the other hand, components for displays such as tape substrates and photomasks showed weakness due to decreased demand in front industries like TV and IT products. Sales decreased by 4% compared to the previous quarter.

The Automotive Components business recorded sales of 380.8 billion KRW, up 48% year-on-year and 15% quarter-on-quarter. As demand in front industries recovered and demand for electric vehicles and autonomous vehicles expanded, sales increased across all product lines including vehicle communication modules and power components for electric vehicles, continuing five consecutive quarters of sales growth. In addition, profitability improved through product and customer portfolio optimization, strengthening global supply chain management (SCM) capabilities, and development focused on platform models (versatile products minimizing customization).

A company official said, “With the full-scale mass production of customers' new models, the supply of high-performance camera modules for smartphones expanded, driving the performance,” and added, “Sales increased across all automotive component product lines including semiconductor substrates for 5G communications, vehicle communication modules, and power components for electric vehicles, supporting the growth in performance.”

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