Seoul: LG Innotek Co., an electronic component manufacturing unit of LG Group, reported a 22.3 percent increase in its third-quarter net profit, driven by robust sales of camera modules and semiconductor substrates for mobile devices. The company's net profit for the July-September period reached 128.4 billion won (US$90.1 million), up from 104.9 billion won in the same period the previous year, according to a regulatory filing.
According to Yonhap News Agency, the company's operating income for the quarter was 203.7 billion won, marking a 56.2 percent increase from the previous year. However, revenue saw a decrease of 5.6 percent, totaling 5.36 trillion won. The earnings did not meet market expectations, as analysts had anticipated an average net profit of 133.3 billion won, based on a survey by Yonhap Infomax, the financial data arm of Yonhap News Agency.
Breaking down the performance by sector, the optical solution division experienced a 7.4 percent decline in sales, amounting to 4.48 trillion won, despite an increase in the supply of high-end mobile camera modules. In contrast, the substrate and material division's sales rose by 18.2 percent to 437.7 billion won, following the launch of new models for mobile products. The automotive components division faced a 5.7 percent drop in sales, totaling 405.6 billion won, due to sluggish global demand.
"The company plans to accelerate the expansion of global production, including in Vietnam and Mexico, and leverage the artificial intelligence transformation while producing key components internally to improve profitability," stated Park Ji-hwan, the chief financial officer.