LG Innotek Co., Ltd. (CEO Ung-beom Lee, KRX: 011070) posted sales of 1,558.8 billion KRW and net profit of 60.7 billion KRW in the third quarter of 2015 based on the Korean-International Financial Reporting Standards (K-IFRSs). Compared to the previous quarter, the company’s sales grew by 7.7%, and profits grew by 24%. However, compared to the third quarter of 2014, the company’s sales decreased by 5.5% and net profit decreased by 41.1%.

A representative of the company stated, “The sales of smartphone camera modules, which makes up the core of our business, has maintained steady growth despite the slowing growth of the smartphone and TV markets and the increasing competition among component manufacturers." He continued, "The sales of automobile components and electronics, which is our future growth engine, has also continued to increase, contributing to our growth in the third quarter."

LG Innotek began mass-producing a new high-performance camera module in the third quarter, reinforcing its position as a leader in the global market. In addition, the company increased the sales of its motor, sensor and communication modules for automobiles and expanded its lineup of wireless charging modules for automobiles, solidifying its foothold in the market and ensuring mid-to-long term growth.

LG Innotek plans to continue growing in its core business areas during the fourth quarter based on its proprietary technologies and the competitiveness of its products. The company hopes to increase the sales of its new models in each business area, including its camera modules and LEDs, and secure new clients in the fields of automobile electrical components and IoT (Internet of Things) components.
 

Performance by business division
 

Optics Solutions Business Unit achieved sales of 774.7 billion KRW, which is a 10% increase over the previous quarter, due to the increase in the sales of its high-performance camera modules featuring 12 megapixels and the optical image stabilization (OIS) technology. This sales volume is a 22% increase compared to the third quarter of last year.

Substrate and Materials Business Unit achieved sales of 370.4 billion KRW, which is a 4% increase compared to the previous quarter, due to the increase in the sales of its High Density Interconnect (HDI) PCB, which is a major component used in smartphones, and the stable sales of its Tape Substrates and Photomask. This sales volume is a 25% decrease compared to the third quarter of last year.

Automotive Components and Electronics Business Unit achieved sales of 163.0 billion KRW, which is a 5% increase compared to the previous quarter, due to the mass-production of new steering and braking motors and sensors and the increase in the sales of the company’s communication modules. This sales volume is a 23% increase compared to the third quarter of last year.

LED Business Unit achieved sales of 188.7 billion KRW, which is a 4% decrease compared to the previous quarter, due to the decrease in the demand for the LEDs for TV Back-Light Unit(BLU) and the decrease in product prices due to increasing competition in the market. This sales volume is a 33% decrease compared to the third quarter of last year.
 

###