LG Innotek recorded a slight increase in revenue in the first quarter compared to the same period last year. Operating profit decreased due to the entry into the off-season and increased costs resulting from investments in future preparations.

LG Innotek recorded sales of 1.7205 trillion won and an operating profit of 16.8 billion won in the first quarter of 2018 under Korean International Financial Reporting Standards (K-IFRS). Compared to the same period last year, sales increased by 4.6%, while operating profit decreased by 74.8%. Compared to the previous quarter, sales fell by 40% and operating profit by 88.1%.

"A company official stated, 'Sales increased compared to the same period last year due to the expansion of high-end components, such as dual camera modules,' adding, 'Operating profit decreased as we entered a distinct seasonal off-peak period amidst expanded investments, including the expansion of core business production capacity, and also due to the impact of the strong Korean won.'"

The Optical Solutions business recorded sales of 1.0141 trillion won, a 10% increase compared to the same period last year. However, this represents a 51% decrease compared to the previous quarter. Although sales increased year-on-year due to the expansion of high-specification products such as dual camera modules, they declined compared to the previous quarter as the business entered an off-season characterized by a significant drop in component demand.

The automotive components business recorded sales of 218.9 billion won, down 4% from the same period last year. Sales increased by 1% compared to the previous quarter. While sales of new products such as automotive camera modules and wireless charging modules expanded, demand for automotive motors and sensors decreased. New orders for vehicle parts in the first quarter amounted to 880 billion won, and the order backlog increased to 10.5 trillion won, strengthening the foundation for mid-to-long-term growth.

The substrate materials business recorded sales of 262.2 billion won, down 1% from the same period last year. This represents a 19% decrease compared to the previous quarter. While semiconductor substrates such as package substrates and display components such as photomasks and tape substrates recorded solid performance, demand for mobile components declined.

The LED business recorded sales of 124.8 billion won, down 25% from the same period last year. Sales decreased by 9% compared to the previous quarter. As the business structure was reorganized by reducing low-profit products and focusing on high-value-added products, the scale of sales decreased while profitability improved.