LG Innotek's third-quarter revenue this year topped 6 trillion won for the first time, but operating profit fell by more than half from a year earlier.
In a disclosure on the 27th, LG Innotek said preliminary consolidated third-quarter operating profit was 94.8 billion won, down 53.4% from a year earlier. Revenue rose 18.6% to 6.3671 trillion won. It is the first time that third-quarter revenue has surpassed 6 trillion won. Compared with the previous quarter, revenue rose 15.2% and operating profit fell 61.4%.
Supply of mobile camera modules increased as a major customer's new product entered full-scale mass production, and demand for high-value-added semiconductor substrates such as radio frequency system-in-package (RF-SiP), flip-chip chip scale package (FC-CSP) and flip-chip ball grid array (FC-BGA) also rose.
A company official explained, "Operating profit fell from a year earlier because of the sharp drop in the won-dollar exchange rate between the time raw materials were purchased and the time products were shipped from mass production."
By segment, revenue at the Optics Solutions business was 5.4041 trillion won, up 20.6%, Package Solutions rose 10.1% to 481.8 billion won, and Mobility Solutions rose 6.8% to 481.1 billion won.
LG Innotek plans to improve profitability by strengthening its business centered on high-value-added semiconductor substrates. It is reviewing expansion of its FC-BGA plant and additional investment at home and abroad, and plans to gradually enter the high-end market for artificial intelligence (AI) accelerators and servers by 2028.