LG Innotek posts whopping 726% jump in profit for Q2
LG Innotek logo
Electronics component manufacturer LG Innotek posted a 726.2 percent year-on-year jump in profit during the second quarter thanks to a recovery in demand for products such as smartphones and computers, far exceeding the market consensus.
The components company, 40 percent owned by LG Electronics, posted 151.7 billion won ($109.6 million) in operating profit during the April-June period, outstripping FnGuide's consensus of 104.9 billion won. Revenue came in at 4.6 trillion won, hovering over the market consensus of 4.5 trillion won.
"The recovery in IT product demand led to a sales increase for the optical solutions and substrates material businesses," said LG Innotek in a release Wednesday.
"The expansion of high value-added products and internal cost control helped improve profitability."
Its optical solutions business recorded its highest second quarter revenue as demand for high-performance camera modules increased. It logged 3.7 trillion won in sales in the second quarter, a 19 percent increase from the previous year.
Its substrate material business recorded a 13 percent increase in revenue, coming in at 378.2 billion won. LG Innotek attributed the uptick to increased demand for smartphones as its supply of chip substrate for mobile devices inched up.
Its vehicle components business, a segment that LG Innotek sees as its next growth driver, recorded a 2 percent increase in sales at 496.7 billion won.
BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]
with the Korea JoongAng Daily
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