LG Innotek "Q1 is Off-Season"... Operating Profit Down 60%

LG Innotek announced an operating profit that decreased by more than 60% due to the seasonal off-season impact in the first quarter.

On the 26th, LG Innotek reported first-quarter sales of 4.3759 trillion KRW and an operating profit of 145.3 billion KRW. Sales increased by 10.7% compared to the same period last year, but operating profit decreased by 60.4%. Compared to the previous quarter, sales and operating profit decreased by 33.2% and 14.5%, respectively.

The first quarter saw a decline in profitability due to the seasonal off-season and a slowdown in front-end IT demand caused by the global economic downturn.

The Optical Solutions business recorded sales of 3.5447 trillion KRW, a 15% increase compared to the same period last year. Despite the usual seasonal off-season and a slowdown in front-end smartphone demand, sales increased due to a higher proportion of high-performance camera module supply. Compared to the previous quarter, sales decreased by 37%.

Sales in the Substrate Materials business were 330.2 billion KRW, down 20% year-on-year and 16% quarter-on-quarter. This was due to sluggish IT demand in front-end industries such as smartphones, TVs, and PCs, caused by the global economic downturn and seasonal off-season. In particular, demand decreased mainly for semiconductor substrates, and sales declined due to customer inventory adjustments (a phenomenon where customers prioritize using existing inventory and do not order new products during demand downturns).

The Automotive Components business recorded sales of 381.7 billion KRW, a 22% increase compared to the same period last year. Despite disruptions in vehicle semiconductor supply, sales of battery management systems and communication modules for electric and autonomous vehicles increased. An LG Innotek official stated, "The Automotive Components business is improving profitability through product and customer structure optimization, strengthening global supply chain management (SCM) capabilities, and development focused on platform models (versatile products that minimize customization)."

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