LG Innotek Posts Q3 Operating Profit of 203.7 Billion Won, Up 56% Year-on-Year

Expansion of High-Value Camera Module and Semiconductor Substrate Sales
Growth Expected to Continue in Q4 with New Mobile Model Launches
Enhanced Global Production Efficiency with New Factories in Vietnam and Mexico
Automotive Order Backlog Reaches 17.8 Trillion Won, Marking Five Consecutive Years of Growth
Targeting 8 Trillion Won in Future Business Sales by 2030

LG Innotek achieved a rebound in its third-quarter performance, driven by increased sales of high-value camera modules and semiconductor substrates.

On October 30, LG Innotek announced through a regulatory filing that it recorded sales of 5.3694 trillion won and operating profit of 203.7 billion won in the third quarter of this year. While sales decreased by 5.6% compared to the same period last year, operating profit increased by 56.2%.

A company representative stated, "With the entry into the seasonal peak period, the supply of high-value camera modules and RF-SiP (radio frequency system-in-package for communications) increased. Favorable exchange rates and improved profitability in the optical solutions and automotive components divisions also contributed to the results."

In the fourth quarter, sales of camera modules and RF-SiP are expected to grow due to the launch of new mobile models, and the expansion of the FC-BGA (flip-chip ball grid array) product lineup for global customers is projected to sustain growth.

Park Jihwan, Chief Financial Officer (CFO) of LG Innotek, said, "We will enhance global production efficiency based on the expansion of new factories in Vietnam and Mexico, and strengthen cost competitiveness through AI-based process innovation (AX) and in-house component production."

By business division, the optical solutions division recorded sales of 4.4812 trillion won, a 7.4% decrease year-on-year. However, shipments of high-value camera modules increased due to mass production of new mobile models, resulting in a 46.8% increase compared to the previous quarter.

Sales in the substrate and materials division rose by 18.2% year-on-year to 437.7 billion won, and increased by 5.2% quarter-on-quarter. The expansion of semiconductor substrate supply, centered on RF-SiP, contributed to the sales growth.

The automotive components division posted sales of 450.6 billion won, down 5.7% year-on-year and 3.3% quarter-on-quarter. While sales declined due to sluggish demand in downstream industries, the growth trend in automotive lighting module sales was maintained. As of the third quarter, the automotive components order backlog stood at 17.8 trillion won, marking five consecutive years of growth.

LG Innotek has set a goal to expand sales related to future growth drivers-such as AD/ADAS (advanced driver-assistance systems) components for vehicle sensing, communications, and lighting; high-value semiconductor substrates; and components for robots, drones, and the space industry-to over 800 billion won by 2030.

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