LG Innotek Reports 2019 2nd Quarter Results2019.07.25
LG Innotek announced that it recorded revenue of 1,522.3 billion KRW and operating income of 18.8 billion KRW in the second quarter of 2019 in accordance with K-IFRS. Revenue and operating income increased by 0.3% and 40.1% respectively from the same period of the last year. Revenue increased by 11.2% and operating income turned to black from the previous quarter.
A company official said, “Although market uncertainties, such as slowing demand for smartphones and trade disputes between the US and China, persisted, sales of market leading products such as display substrate materials and multiple camera modules increased, resulting in a surplus after one quarter.”
Performance by business units
Optics Solution Business Unit posted sales of 830.1 billion KRW, a 2% increase from the same period of the last year. It is a 25% increase from the previous quarter. Overall demand for smartphone camera modules stagnated, but sales of high-end components such as triple camera modules increased. In particular, the company has supplied a high-performance triple camera module in a timely manner to LG Electronics’ LG V50 ThinQ, which has gained a good response from the market.
Substrate & Material Business Unit saw a 6% decrease of sales from the same period of the last year, but an 8% increase from the previous quarter, with sales of 277 billion KRW. Demand for substrates for mobile devices has decreased, but sales of advanced semiconductor components, including high-resolution display components such as tape substrates and photomasks and package substrates, has increased.
Automotive Components and Electronics Business Unit posted sales of 264.7 billion KRW, a 10% increase from the same period of the last year. The sales decreased by 3% from the previous quarter. Sales of ADAS (Advanced Driver Assistance System) cameras and communication modules, which are key items for semi-autonomous driving functions, has increased.
LED Business Unit posted sales of 92 billion KRW, a 22% decrease from the same period of the last year and a 12% decrease from the previous quarter. In the process of streamlining the business structure centering on high-value products such as those for automobiles, sales of low-profit products such as lightings sources for illumination decreased.