LG Innotek (CEO: Hur Young-ho) ushers in an era of quarterly sales amounting to \1 trillion for the first time in its history.
On July 27, LG Innotek announced that it had recorded sales of 1 trillion and 28.7 billion and an operating profit of \86.1 billion on the basis of IFRS (International Financial Reporting Standards) for the second quarter of 2010.
“Thanks to the favorable conditions in the market for LED Backlight Units (BLU) and power modules (power supply units) for TV sets, we generated monthly sales of around \100 billion, the highest monthly sales ever, and the company opened an era of quarterly sales reaching \1 trillion with the advancement of mobile camera modules into new markets,” said an official at LG Innotek.
In particular, these achievements represent a dramatic leap in that sales of the LCD module business – which reached an average quarterly figure of \160 billion, accounting for 19% of all sales last year – have not been included in the calculation of the entire sales figure because the relevant business operations were transferred to LG Display last April.
Besides, it has been observed that the increase in customer demand for vehicle parts has also contributed to the improvement of sales, along with the increase in sales of premium items in the PCB and SD businesses.
In conclusion, LG Innotek has recorded its highest-ever half-year sales, which stood at \1 trillion and 803.6 billion, and operating profit of \128.5 billion, for the second half of the year.
The company forecasts that the demand for TV sets and mobile products will continue to grow in the 3rd quarter, and accordingly is planning to maximize the productivity of its cut-throat and core businesses - including LED and power modules, and to keep the demand and supply for raw materials in balance, in order to maintain the growth of its sales and operating profits.
The company is also planning to expand the proportion of premium articles, as well as to improve quality and productivity to maintain high profitability and competitiveness across all of its business spheres.
2nd Quarter Performance in Each Business Sphere
In the LED (Light Emitting Display) business, the company recorded sales of \285.1 billion, representing an 84% increase from the previous quarter, or 375% year on year, thanks to an increase in demand for LED BLUs for TV sets, and increased orders for illumination packages and general lighting items.
In the DN (Display and Network) business, the company posted sales of \277.2 billion, showing a 17% increase from the previous quarter, driven by an increase in demand for high-value-added power modules and an increase in sales of wireless modem solutions.
In the PCB (Printing Cuircuit Board) business,the company recorded sales of \183.5 billion, up 9% from the previous quarter, which was led by increased orders from strategic customers and the company’s effort to reorganize the product portfolio.
In the SD (Semiconductor and Display) business,the company registered sales of \132.3 billion, marking an increase of 13% from the previous quarter, driven by the continuous expansion of sales in core product groups including tape substrates and photomasks, as well as an increase In orders by the major customers.
In the Motor and Auto Part business, the company recorded sales of \ 69 billion, showing a 10% rise from the previous quarter, thanks to the inclination of orders for Vocie Coil Motors and steering motors fixed into auto parts.
In the SnO (Sensing and Optics) business,the company posted sales of \105.9 billion, a 94% hike from the previous quarter, primarily as a result of the advancement of its mobile camera modules into new markets.
LG Innotek’s Performance for 2nd Quarter
(Unit: \0.1 billion)
LG Innotek’s Performance for the 2nd Quarter| | 2Q,’10 | 2Q, ’09 | Year-on-Year Rate | 1Q, ’10 | Year-on-Year Rate |
Sales | 10,287 | 5,032 | 104.4% | 7,749 | 32.7% |
Operating Profit | 861 | 203 | 323.9% | 424 | 103.1% |
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