Press Release

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LG Innotek Achieves Record Annual Revenue

2015. 01. 27.

LG Innotek (CEO Ung-beom Lee) continues to show solid growth, recording its highest ever performance last year.

In 2014, LG Innotek recorded KRW 6,446.1 billion won in revenue and KRW 314.0 billion in net profit, based on the Korea International Financial Reporting Standards (K-IFRS), representing an increase of 4.1% and 130.6%, respectively, over the preceding year.

An LG Innotek executive stated, “This result is attributable to our efforts to further strengthen the foundation for our future business lines through the convergence of core technologies, such as automotive electric and electronic parts and semiconductor wafers, while augmenting the global market leadership of our camera modules, despite the uncertain market conditions.”

In addition, LG Innotek recorded KRW 1,815.0 billion in revenue and KRW 58.0 billion in net profit in Q4 2014, showing an increase of 17.6% and 100.8%, respectively, over the same period of the previous year. Notably, the fourth-quarter revenue increased 10% over the preceding quarter despite the seasonal slump in demand, while the fourth-quarter net profit decreased by 43.6% over the preceding quarter.

LG Innotek plans to further accelerate its preparations to become a business specializing in the most advanced materials and parts by diversifying into the Internet of Things (IoT) and other promising neighboring domains, while further augmenting the competitive foundation for its main business lines, including electric and electronic automotive parts, camera modules and semiconductor wafers.

Performance by Business Sector

The company’s optical solutions business recorded KRW 2,746.0 billion in revenue in 2014, an increase of 8.8% over the preceding year, due to customers’ recognition of the performance and quality competitiveness of its camera modules. It also recorded KRW 936.6 billion in revenue in the fourth quarter, the greatest figure in its history. In fact, its fourth quarter revenue increased by 33% compared with the same period of the preceding year, and by 48.2% over the preceding quarter.

LG Innotek’s printed circuit board and materials business recorded KRW 1,699.3 billion in revenue in 2014, showing an increase of 6.5% over the preceding year thanks to the growing revenue of its high-performance products, including touch-screen panels (TSP) and flip-chip chip-scale packages (FC-CSP). It posted KRW 421.8 billion in revenue for the fourth quarter, i.e. an increase of 21% over the same period of the preceding year; although revenue in the fourth quarter decreased by 14.3% compared with the preceding quarter due to a seasonal slackening of demand.

Its automotive parts business recorded KRW 532.5 billion in revenue in 2014, showing an increase of 18.7% over the preceding year thanks to the growing revenue of camera modules for automobiles, LED and other convergence or combination products. In particular, it further strengthened its sustainable growth foundation by winning new orders worth KRW 1.5 trillion, posting an order balance of KRW 4.3 trillion. Revenue in the fourth quarter increased to KRW 264.1 billion, a rise of 24.5% over the same period of the preceding year, or 9.3% over the third quarter.

The company’s LED business augmented its growth base by generating greater revenue from such high-margin products as UV LEDs and increasing its revenue ratio of illumination products to 31.5%. However, its revenue decreased by 4.9% to KRW 1,049.3 billion from the preceding year as a result of the reduced selling price of various popular products. It recorded KRW 219.9 billion in revenue, a decrease of 9.9% from the same period of the preceding year, or 22.5% from the preceding quarter, due to the slow seasonal demand.