Seoul: LG Innotek Co., an electronic component manufacturing unit of LG Group, announced on Wednesday that it experienced a net loss in the second quarter primarily due to seasonal weaknesses in the mobile device sector and ongoing tariff uncertainties.
According to Yonhap News Agency, the company revealed in a filing that it recorded a net deficit of 8.7 billion won (US$6.3 million) for the April-June period, a significant shift from a profit of 98.9 billion won during the same period the previous year. The operating income saw a drastic decline of 92.5 percent year-on-year, falling to 11.4 billion won from 151.7 billion won, while sales decreased by 13.6 percent to 3.93 trillion won.
The company pointed to decreased sales in its mobile-related business and persistent concerns over tariffs as the primary reasons for the downturn in earnings. Despite these challenges, LG Innotek remains optimistic about future growth. As a key supplier of camera modules for Apple Inc.'s iPhones, the company anticipates an increase in sales of package substrates for mobile devices in the latter half of the year, spurred by the mass production of new models by major clients.
Additionally, LG Innotek highlighted that earlier orders for premium automotive components are expected to positively impact sales in the third quarter, suggesting a potential recovery in the coming months.