|LG Innotek 2nd Quarter Performance Report|
|On July 26th, LG Innotek (CEO by Ung-Beom Lee) announced that according to International Financial Reporting Standards (IFRS) the company recorded - 1,236 billion won in sales, resulting in a 19 billion won operating profit during the 2nd quarter. The company has recorded two consecutive profitable quarters.
During the 2nd quarter, sales increased by 0.1% and operating profit decreased by 20.2% compared to the previous quarter. However, compared to the same quarter of the previous year, a 5.3% sales growth and operating profits increased by 222%
According to LG Innotek , “In spite of the global economic crisis, the BLU (Back Light Unit) from the LED business team, RFPCB and Package Substrate from the substrate business team and motors from the automobile components business team have yielded sales growth with enterprise-wide efforts that were made to help reduce costs, as a result, we retainprofit margins.”
LG Innotek announced, “In the 3rd quarter, we expect our partner client’s new product to be launched and consequential increase in the demand for relevant components. To prepare for this, we are focusing on maintaining a stable supply of major components and expanding our sales.”
In addition, LG Innotek is expecting to be competitive in the next-generation growth business, supporting business structural advancements and is planning to promote quality, innovation, and cost competitiveness throughout respective sector in the company.
Departmental Performance Report
LED (Light Emitting Diode) recorded sales of 235 billion won, which represents a 23% increase from the previous quarter, due to the increasing demand for a new TV model and sales growth in lighting.
Optics Solution recorded sales of 328 billion won, which is down by 15% in figures from the previous quarter. This was influenced by a decrease in the flow of major model materials and an adjustment to inventory.
DN (Display Network) recorded 236.4 billion won in sales, which is down by 13% from the last quarter. This was influenced by a decrease in the sales of power and wireless communications parts.
Substrates & Materials (Substrate) recorded 143.9 billion won in sales, which represents an increase of 13% from the previous quarter, thanks to the consistent sales growth of RFPCBs (Rigid Flexible Printed Circuit Board) and package substrates.
Substrates & Materials (Material) recorded sales of 209.5 billion won, which represents an increase of 14% from the previous quarter, due to the increased demand for display product lines and lead frames.
AM (Automotive/Motor) recorded sales of 95.8 billion won, which represents an increase of 10% from the previous quarter, due to a sales recovery in the motor department along with a steady sales growth in automobile components.