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SEOUL, South Korea, July 28, 2022 /PRNewswire/ -- Despite challenging market conditions and the second quarter being an off-season, LG Innotek showed a substantial growth from the same period of the last year.
LG Innotek (CEO Cheol-Dong Jeong) achieved sales of 3,702.6 billion won and operating profit of 289.9 billion won in the second quarter of the year 2022 in accordance with Korea International Financial Reporting Standards (K-IFRS). Sales and operating profit increased by 57.2% and 90.8% respectively from the same period of the last year. Compared to the previous quarter, the company's sales decreased by 6.3%, and profits decreased by 21.0%.
A company representative said, "The second quarter is typically an off-season and the market conditions are pretty dire due to the global recession, decrease in demand for home appliances and IT products, rising prices, and prolonged war in Ukraine."
He continued, "Despite these challenging conditions, favorable trends continued in the sales of high-performance camera modules for smartphones. Also, the steady demand for semiconductor substrates for 5G communication and the expansion of production capacity drove the sales, significantly increasing the earnings compared to the same period of the last year." He added, "In addition to them, the increase in sales continued in components for electric cars and self-driving cars such as communication modules and motors despite unfavorable conditions."
Performance by business units
The Optics Solution Business posted sales of 2,803.5 billion won, a 72% increase from the same period of the last year. This is thanks to customers' steady demand for high-value products, such as multi-camera modules and 3D sensing modules, geared towards their new models, despite the second quarter being an off-season. This is a 9% decrease from the quarter prior.
The Substrate & Material Business posted sales of 451.7 billion won, a 25% increase from the same period of the last year. The steady demand for semiconductor substrates for 5G communication, such as those for radio frequency system-in-packages (RF-SiP) and 5G mmWave antenna-in-package (AiP), and the expansion of production capacity drove the favorable sales performance.
Components for displays such as tape substrates and photomasks showed good results despite concerns for worsening sales due to the decrease in demand for TVs, IT products, etc. in downstream industries. The sales increased 9% from the quarter prior.
The Automotive Components & Electronics Business posted sales of 330.5 billion won, a 32% increase from the same period of the last year and a 5% increase from the quarter prior. As the demand for components for electric cars and self-driving cars such as communication modules and motors increased, the business showed a sales growth for five consecutive quarters.
About LG Innotek Co.,Ltd.
LG Innotek is a cutting-edge materials and components manufacturer and an affiliate of the LG group. The company's business units include core components for mobile, automotive, display, semiconductor, and IoT products. Furthermore, the company has cooperated closely with the mobile devices, home appliances, and automotive companies, producing camera modules, automotive electronic components, wireless communication modules, and substrate materials.
LG Innotek is headquartered in Seoul, Korea and its sales subsidiaries are located in Germany, USA, China, Japan, and Taiwan with production subsidiaries in China, Vietnam, Indonesia, Mexico, and Poland. For more information, please refer to the website: www.lginnotek.com
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