Thanks to the increase in sales of the high performance camera module, LG Innotek have reached a business profit of 64.4 million dollars for the first quarter, which is 19% increased compared to the previous quarter. It is being assessed that although sales have decreased by 15.1% compared to the previous quarter from the influence of the off-season, they have reinforced their position in the camera module market and have secured the foundation for growth businesses such as automobile parts.
LG Innotek announced on the 28th that their sales for the first quarter based on Korea International Financial Reporting Standards(K-IFRS) recorded 1 billion 440 million dollars, and business profit 64.4 million dollars. Sales have increased 5.7%, and business profit 9.4%, from a year ago.
An LG Innotek official concluded, “We have put up a good defense despite the intensifying competition and shaky market environment changes. This is a result from establishing a leading status in the market centering the camera module, and laying a foundation for future growth businesses such as car electronic parts etc.”
Sales of the optical solutions business, which is represented by the camera module, reached 664.3 million dollars, 21% increased from a year ago. Sale extension of the high performance camera module with a high pixel product of over 13.0 mega pixel, Optical Image Stabilization(OIS), etc. applied contributed to higher sales.
The substrate material business recorded a sales of 357.5 million dollars, 7% higher than a year ago, thanks to sale extension of new models in the display material field such as the photomask. Under the influence of the off-season for the mobile substrate material market, 9% decreased compared to the previous quarter.
Car electronic parts business sales were 140.3 dollars, 20% increased from a year ago. Sales of car specialized high reliability products such as communication modules for vehicles, motor, LED, etc. were extended.
The LED business was greatly influenced by the fall in demand for the Back Light Unit(BLU) LED due to the stagnation of the TV market, and recorded a sales of 206.2 million dollars, 16% decreased from a year ago. However, results have increased by 0.5% from the previous quarter thanks to lighting sales expansion. Lighting LED sales for the 1st quarter recorded 88 million dollars, 23% increased from a year ago.
LG Innotek will actively respond to strategic customer new model releases in the second quarter and put spurs to securing new customers. They plan to provide a differentiated customer value through innovative products such as high performance camera modules, high reliability car electronic parts, components of next generation Internet of Things(IoT), etc.
Staff Reporter Park, Jeong-eun jepark@etnews.com