Fourth quarter sales of 2.9 trillion won and operating profit of 200 billion won
Impact of increased sales of high-end components for smartphones
Last year's sales were 8.3 trillion won, and operating profit was 400 billion won.


LG Innotek announced its fourth quarter 2019 performance on the 29th.

In the fourth quarter of 2019, LG Innotek recorded sales of KRW 2.9652 trillion and operating profit of KRW 209.3 billion under K-IFRS. Compared to the same period last year, sales increased by 22% and operating profit by 102%. Compared to the previous quarter, sales increased by 21.2% and operating profit by 12.2%.

An LG Innotek official said, “Sales of high-end components used in premium smartphones, such as high-performance camera modules, increased, leading to increases in both sales and operating profit.”

Meanwhile, LG Innotek's 2019 annual sales reached KRW 8.3021 trillion and operating profit reached KRW 403.1 billion. Compared to the previous year, sales increased by 4% and operating profit by 53%. The optical solutions business, which produces camera modules and other products, and the substrate materials business, which produces semiconductor substrates and other products, led the performance increase.

The Optical Solutions business reported sales of KRW 2.2472 trillion, a 34% increase year-over-year. This represents a 34% increase compared to the previous quarter. This increase was driven by increased sales of high-performance products, such as multiple camera modules for smartphones. Annual sales reached 5.4257 trillion won, a 6.5% increase over the previous year.

The substrate materials business recorded sales of KRW 286.2 billion, an 8% decrease year-on-year and a 6% decrease quarter-on-quarter. While sales of semiconductor substrates and photomasks increased, sales declined due to seasonal declines in display substrate demand and the discontinuation of the HDI business. Annual sales reached KRW 1.1261 trillion, a 2.8% year-on-year decrease.

The electrical components business recorded sales of KRW 301 billion, up 14% year-on-year and 3% quarter-on-quarter. This increase was driven by increased sales of automotive motors and communication modules, as well as increased sales of ADAS camera modules and electric vehicle power components. Annual sales reached KRW 1.132 trillion, a 17.5% increase from the previous year.

The LED business recorded sales of KRW 67 billion, down 29% year-on-year and 27% quarter-on-quarter. This decline stemmed from a restructuring aimed at reducing low-margin products, such as light sources for general lighting, and focusing on high-growth products, such as automotive lighting modules. Annual sales reached KRW 354.6 billion, a 22.3% year-on-year decrease.