LG Innotek (CEO Young Ho, Hur) has opened an era of 4 trillion won in annual sales for the first time since its establishment.

LG Innotek said on January 21 that it posted 4 trillion and 103.5 billion won in annual sales and 156.5 billion won in operating profit in 2011 under the IFRS rules. Sales represent a 67 percent gain, and operating profit a 205.1 percent advance.

An LG Innotek official said, “Amid the full-blown growth of the LED Backlight Unit (BLU) market, our annual LED sales increased by nearly 1 trillion won, while sales gained robustly in the Sensing and Optics Business due to the acquisition of new clients, which collectively enabled the Company to attain 4 trillion won in annual sales.”

Annual sales of the DN(Display&Network) Business also exceeded 1 trillion won thanks to the expansion of high value-added TV power module market, and rising demand of mobile telecom parts for vehicles, while growing demand of vibration motors for smartphones and automobile parts from client companies also contributed to its improving performance, the Company analyzed.

In the fourth quarter, the Company posted 1 trillion and 135.9 billion won in quarterly sales, and 36 billion won in operating loss due to inventory adjustment in industries, to which it supplies products, and a seasonal decline of market demand.

Meanwhile, LG Innotek targets 5 trillion and 300 billion won in annual sales this year, the largest ever figure, in a bid to consolidate its stature as a global enterprise.

Performance by Sector

The Display and Network Business posted 1 trillion and 130.3 billion won in annual sales, up 25.5 percent on year, due to rising demand of high value-added power modules, and growing sales of mobile telecom parts for vehicles. It posted 308.8 billion won in quarterly sales in the fourth quarter, up 0.2 percent from the previous quarter, due to expanding sales of mobile telecom parts despite being the slow demand season.

The LED Business posted 905.3 billion won in annual sales, up 210 percent on year, due to the full-blown expansion of the TV LED BLU market. It posted 211 billion won in quarterly sales in the fourth quarter, a 17 percent decline from the previous quarter, due to a fall in LED BLU demand stemming from a falling demand and inventory adjustment in industries, to which it supplies products, including LED TVs.

The SnO Business recorded 709.9 billion won in annual sales, a whopping 153.6 percent advance on year, due to growing sales of camera modules for mobile devices to strategic global customers. It posted 296.8 billion won in quarterly sales in the fourth quarter, up 17 percent from the previous quarter, thanks to growing sales of premium-class camera modules and touch windows, despite being traditionally low demand season.

The PCB Business posted 682.7 billion won in annual sales, up 0.3 percent on year, despite worsening market environment, including intensifying competition and falling demand from client firms. It recorded 150.4 billion won in quarterly sales in the fourth quarter, down 16 percent from the previous quarter.

The SD Business recorded 490.5 billion won in annual sales, up 15 percent on year, through the expansion of strategic clients and its overseas market shares. It posted 115.5 billion won in quarterly sales in the fourth quarter, down 8 percent from the previous quarter, due to a seasonal decline in demand.

The Motor and Autoparts Business recorded 271.4 billion won in annual sales, up 12.6 percent on year, due to rising demand of vibration motors for mobile devices, and of motors for vehicles due to introduction of new vehicle models. It posted 77.9 billion won in quarterly sales in the fourth quarter, up 26 percent from the previous quarter.

LG Innotek’s 2010 Performance

(Unit: 100 million won)

LG Innotek’s 2010 Q4 Performance

(Unit: 100 million won)

※ In terms of accounting standards, the amounts suggested above reflect business performance in the first half of 2009, which was before the July 2009 merger with LG Micron; it does not reflect the performance of the LCD Module Business, which was transferred to LG Display in May 2010, by applying accounting practice for business that has been halted.