LG Innotek is pushing hard to achieve a turnover of 5 trillion won, a record for the company, and improve its profit structure in 2011.
Despite the expected uncertainties in a global business environment in 2012, LG Innotek will achieve its annual turnover of 5 trillion won through an increased supply of high value items in both its core businesses and its growth businesses, while taking innovative measures to reinforce its cost competitiveness.
LG Innotek will secure its position as a global powerhouse in 2012 by exceeding the ‘wall’ of 5 trillion won in sales following its sales records of 4103.5 billion won in 2010 and 4553 billion in 2011.
Also, LG Innotek will invest 430 billion won in 2011 to enhance its competitiveness in both its core businesses – including camera modules – and its next generation growth businesses – including touch windows and semi-conductor packages.
To Achieve a Turnaround thru Maximized Profitability in Core and Growth Businesses
LG Innotek expects to meet its annual sales target of 2012 based on the anticipated increase in the demand for display devices for 3D TV, for instance, and a continuous growth of the mobile device markets including LTE smart phones.
LG Innotek is particularly optimistic about the roles of a few key products in leading the sales increase in 2012 such as camera modules of more than five million pixels, for which LG Innotek has already secured its global competitiveness, and the main board panel HDI (High-density Interconnection) for smart phones.
LG Innotek succeeded in making the automotive components business a profitable business in 2011 following its similar success for its touch window business in 2010. It expects to see more accelerated improvement in the profitability of the next-generation growth businesses.
Regarding the LED business, which suffered in 2011 due to a worldwide economic slowdown, LG Innotek will maximize its profitability by pursuing innovative cost competitiveness enhancement efforts and an enhanced product and clientele structure.
Meanwhile, LG Innotek announced on January 30 that it recorded annual sales of 4553 billion won and an operating loss of 66.8 billion won in 2011 according to the international accounting standard, IFRSs (International Financial Reporting Standards).
In the 4th quarter of 2011, LG Innotek recorded a highest quarterly turnover ever of 1213.6 billion won, but because of a continued slowdown in the display industry combined with a seasonal decline in the demand for the company’s products, recorded 60 billion won in operating losses.
An official of LG Innoteck said, “Although the company suffered operating losses in 2011 largely due to a slowdown in the global economic growth, it strengthened its market position in its core businesses and also reinforced its competitiveness in its growth businesses. Overall the company leveled up its business structure in 2011.” “The company will accomplish a turnaround in 2012 as soon as possible by enhancing its potential to create profits, among others.
LG Innotek – 2011 Record
(Unit: 100,000,000)
|
|
2011
|
2010
|
Increase over 2010
|
|
Sales
|
45,530
|
41,035
|
11.0%
|
|
Operating Profits
|
-668
|
1,565
|
(minus over 2010)
|
LG Innotek – 4th Qtr of 2011
(unit: 100,000,000)
|
|
4th Qtr.
|
3rd Qtr.
|
Increase over prev. quarter
|
4th Qtr ‘11
|
Increase over
4th Qtr 2011
|
|
Sales
|
12,136
|
10,671
|
13.7%
|
11,359
|
6.8%
|
|
Operating Profits
|
-600
|
-54
|
-1018.3%
|
-360
|
-66.7%
|
※ All the figures in the table are according to the calculation standards of K-IFRS.
