LG Innotek saw a significant improvement in both revenue and operating profit in the fourth quarter of last year due to the expansion of smartphone component supply and increased sales of automotive components.

LG Innotek recorded sales of 2.8698 trillion won and an operating profit of 141.2 billion won in the fourth quarter of 2017 under Korean International Financial Reporting Standards (K-IFRS). Compared to the same period last year, sales increased by 39.7% and operating profit by 19.8%. Compared to the previous quarter, sales increased by 60.6% and operating profit by 152.5%.

"As sales of new premium smartphones by major clients have begun in earnest, demand for high-end components such as dual camera modules has increased," a company official stated. "Sales of wireless charging modules, automotive parts, and 2Metal COF have also increased."

Along with this, LG Innotek recorded annual sales of 7.6414 trillion won and an operating profit of 296.5 billion won in 2017. With sales increasing by 32.8% and operating profit by 182.9% compared to the previous year, sales surpassed 7 trillion won for the first time in history.

The Optical Solutions business recorded sales of 2.0837 trillion won, a 57% increase compared to the same period last year. This represents a 101% increase compared to the previous quarter. Sales of ultra-precision, high-performance components, such as camera modules, increased significantly due to the full-scale mass production of new models by strategic overseas customers. The expansion of dual camera module supply for flagship smartphones of customers in Greater China amplified the scale of sales growth.

The automotive components business recorded sales of 342.5 billion won, up 13% from the same period last year. This represents a 9% increase compared to the previous quarter. Amid rising domestic demand for automotive parts, the supply of new models to overseas customers also increased. Along with this, sales of wireless charging modules increased in the global market. Last year, new orders for automotive parts reached 3 trillion won, and the order backlog grew to 9.5 trillion won, further solidifying the foundation for mid-to-long-term growth.

The substrate materials business recorded sales of 324.5 billion won, an 18% increase compared to the same period last year. This represents a 15% increase compared to the previous quarter. Amidst rising sales of 2Metal COF, semiconductor substrates such as package substrates and display components such as photomasks and tape substrates posted strong results.

The LED business recorded sales of 136.7 billion won, a 16% decrease compared to the same period last year, due to the impact of the off-season, including customer inventory adjustments, amidst a decline in sales volume as it scaled back low-profit products and improved its business structure to focus on high-value-added products. Sales decreased by 20% compared to the previous quarter.