LG Innotek (CEO: Ung-Beom Lee) marked sales of 1,458.8 billion KRW and operating income of 63.1 billion KRW for the 1st quarter of 2014 on a K-IFRS basis.

Sales went down by 5.5% from that of the previous quarter, but operating income improved by 118.4%. Meanwhile, there was a 5.9% decline in sales but a 298.6% improvement in operating income on a YoY basis.

An official from the company commented, “The first quarter is an off-season with seasonally weak demand, but more focus on high performance and high value products such as high pixel density camera modules, LEDs for general lighting, and the continued efforts for cost reduction, resulted in improved profitability.”

For the second quarter, LG Innotek plans to improve sales by  responding to new models from strategic customers while diversifying customer range by differentiating its product lines. Cost competitiveness efforts will continue such as improving productivity in order to maintain better profitability.

The company also plans to redouble its efforts to come up with market leading products with combined technologies, while driving in-house cultural innovation such as improving business process and creating immersive work environment.

Business Performance by Division

Optical solution division marked 586.3 billion KRW in sales, a 17% decline from the previous quarter  due to weakened demand for cameral modules for mobile devices in off-season, which is 9% off from that of the same quarter in 2013.

LED (Light Emitting Diode) division benefited from the improved demand in the TV market by selling more LEDs for backlight unit(BLU) and LEDs for lighting, posting total sales of 263.9 billion KRW, 3% up from the 1st quarter in 2013.

Substrate & material division posted 358 billion KRW in sales, 3% higher than the previous quarter, thanks to improved demand for high value-added semiconductor packages and touch screen panels.  The sales declined 11% YoY.

Automotive component & electronics division, with better sales from automotive motors and wireless modules, showed a 3% increase from the previous quarter to post 266.7 billion KRW, which is 1% up from 1st quarter of 2013.

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