LG Innotek reported significantly improved performance in the third quarter compared to the same period last year and the previous quarter. This was driven by increased supply of new smartphone camera modules and increased sales of new products in its automotive components and substrate materials businesses.

LG Innotek reported sales of KRW 1.7872 trillion and operating profit of KRW 55.9 billion in the third quarter of 2017, based on Korean International Financial Reporting Standards (K-IFRS). Compared to the same period last year, sales increased 29.1% and operating profit increased 171.9%. Compared to the previous quarter, sales and operating profit increased 33.4% and 71.9%, respectively.

A company official stated, “With the launch of new premium models by major customers, demand for ultra-precision, high-performance parts has increased,” adding, “Based on our quality competitiveness, we have been able to supply innovative parts in a timely manner, and sales of new products such as wireless charging modules and 2Metal COFs have also increased.”

LG Innotek plans to continue its growth momentum through stable parts supply in the fourth quarter as sales of new products from strategic customers in key business areas such as camera modules, electrical components, and substrate materials begin to expand in earnest.

The Optical Solutions business recorded sales of KRW 1.0357 trillion, a 55% year-on-year increase and a 63% quarter-on-quarter increase. This increase was driven by a significant increase in camera module sales due to the launch of new models by strategic overseas customers, as well as the expanded supply of dual camera modules for flagship smartphones from LG Electronics and customers in the Greater China region.

The battlefield components business recorded sales of KRW 313.6 billion, a 13% increase over the same period last year. Sales increased 16% compared to the previous quarter. Amidst recovering domestic and international demand for auto parts, sales of electronic components, including wireless charging modules and TV components, also expanded. New orders for auto parts reached KRW 2.4 trillion through the third quarter, and the order backlog increased to KRW 9.1 trillion, solidifying the foundation for mid- to long-term growth.

The substrate materials business reported sales of KRW 283.3 billion, a 4% increase from the previous quarter, although the same as the same period last year. Display components, such as photomasks and tape substrates, performed well, while sales of semiconductor substrates, including package substrates, and 2Metal COFs increased.

The LED business recorded sales of KRW 170.7 billion, a 1% year-on-year decrease, as the company streamlined its business structure by reducing low-margin products and focusing on high-value-added products such as automotive, UV, and high-power LEDs. While sales declined 3% quarter-on-quarter, profit and loss remained similar.