SEOUL– LG Innotek Co., a major electronics components maker in South Korea, on Thursday reported solid second-quarter earnings results on the back of increased sales of high value-added products.
The affiliate of LG Group reported a nearly 20-fold on-year increase in net income after reporting 147.3 billion won (US$128.6 million) in the second quarter.
The company said in a regulatory filing that operating profit for the April-June period rose 178.3 percent on-year to 151.9 billion won, while sales increased 55.9 percent to 2.35 trillion won over the cited period.
But compared with the first quarter, its sales declined 23.3 percent, while operating profit plunged 56.2 percent.
“Despite weak seasonality and growing COVID-19 uncertainties, products like smartphone triple cameras and 3D sensing modules led the performance,” the company said. “Sales increase in substrates for 5G chips and displays as well as automotive cameras and communications modules also helped.”
By business, revenue from its optical solutions unit jumped 67 percent on-year to 1.55 trillion won in the second quarter, while its substrates business posted 361.2 billion won over the cited period, up 22 percent from a year earlier.
Its automotive components unit logged revenue of 326.2 billion won, up 40 percent from a year earlier, as sales of advanced driver assistance systems cameras and components supplied to electric vehicles increased.
Shares in LG Innotek rose 1.77 percent to 229,500 won on the Seoul bourse, outperforming the broader KOSPI’s 0.18 percent increase. Its second-quarter earnings results were released before the market close.
Source: Yonhap News Agency