LG Innotek appears to have succeeded in boosting profitability in the fourth quarter of last year, helped by the launch of new iPhone models.
On the 26th, LG Innotek disclosed that fourth-quarter sales last year were 7.6098 trillion won and operating profit was 342.7 billion won. Sales rose 14% from the same period a year earlier, and operating profit increased 31%. Annual sales were 21.8966 trillion won, up 3.3% from the previous year, while annual operating profit was 665 billion won, down 5.8% from a year earlier.
A company official said, "During the peak season for supplying new mobile models, results for high-value camera modules and communication semiconductor substrates increased," and noted, "Mobility components such as vehicle camera, communication, and lighting modules also continued to grow, contributing to sales expansion."
The Optical Solutions business posted sales of 6.6462 trillion won, up 15.2% from a year earlier. That was a 48.3% increase from the previous quarter. With full-scale mass production of new mobile models in the fourth quarter, supply of high-value camera modules increased, and sales rose on expanded supply of vehicle camera modules to a North American customer.
The Package Solutions business recorded sales of 489.2 billion won, up 27.6% from a year earlier. That was an 11.8% increase from the previous quarter. As mass production of new mobile models ramped up, supply of semiconductor substrates increased, boosting sales.
The Mobility Solutions business reported sales of 474.3 billion won, down 0.1% from a year earlier. That was a 5.3% increase from the previous quarter.
Although growth in downstream industries continues to slow, sales of high-value products such as vehicle communication and lighting modules are maintaining year-over-year growth. Order-taking activities also proceeded actively, with 4.8 trillion won in new orders secured over the past year. The order backlog at year-end was 19.2 trillion won, up 11.6% from a year earlier, surpassing the 19 trillion-won level for the first time.
Gyeong Eun-guk, chief financial officer (CFO) of LG Innotek, said, "LG Innotek will focus this year on strengthening a stable revenue generation system based on a high-profit business portfolio." He added, "In particular, with solid demand for semiconductor substrates, utilization for semiconductor substrates is expected to enter a phase near the maximum level," and said, "We are reviewing various ways to expand semiconductor substrate production capacity."