Q1 2017 Revenue 1.6447 trillion won, Operating Profit 66.8 billion won

LG Innotek announced that its first-quarter performance improved as camera modules and automotive parts increased.

LG Innotek recorded sales of 1.6447 trillion won and an operating profit of 66.8 billion won in the first quarter, marking a 37.6% increase in sales and a significant rise in operating profit compared to the same period last year. However, compared to the previous quarter, sales and operating profit decreased by 19.9% and 43.3%, respectively.

"A company official stated, 'Although it was the usual off-season, we achieved solid results by securing a leading position in the smartphone dual camera market.'" The official explained that this was the result of being recognized for the unrivaled dual camera technology and quality reliability secured one step ahead of competitors.

LG Innotek's performance improved significantly due to stable sales of dual camera modules and the full-scale mass production of camera modules for the LG Electronics G6.

LG Innotek plans to actively respond to market changes to maintain its year-over-year performance improvement, despite the expected decline in component demand from strategic customers in the second quarter. In particular, the company plans to expand the supply of camera modules to the Greater China region and accelerate its efforts to target high-value markets for substrate materials and LEDs.

Substrate materials and LED businesses declined due to the off-season.

The Optical Solutions business recorded sales of 924.2 billion won, a 107% increase compared to the same period last year. Performance improved significantly due to stable sales of dual camera modules and the full-scale mass production of camera modules for the LG Electronics G6. Sales decreased by 30% compared to the previous quarter due to the seasonal off-season.

The automotive parts business recorded sales of 227.3 billion won, a 21% increase compared to the same period last year. This was driven by expanded sales of technology convergence products, such as automotive camera modules and automotive LEDs. Compared to the previous quarter, sales decreased by 1% due to a decline in seasonal demand. In the first quarter, new orders for automotive parts amounted to 1.1 trillion won, and the order backlog stood at 8.2 trillion won, solidifying the foundation for sustainable mid-to-long-term growth.

The substrate materials business recorded sales of 264.1 billion won, down 17% from the same period last year due to the off-season for mobile and semiconductor components. This represents a 4% decrease compared to the previous quarter. Meanwhile, profitability improved compared to the previous quarter due to production site efficiency improvements implemented last year.

The LED business recorded sales of 167.6 billion won, a 3% decrease compared to the same period last year but a 3% increase compared to the previous quarter. The company achieved improved profitability by operating the business with a focus on profitability rather than outward growth. The company is concentrating on targeting high-value markets such as high-output lighting, automotive, and UV LEDs.