LG Innotek Co.’s headquarters in northwestern Seoul (Image courtesy of Yonhap)
SEOUL, April 23 (Korea Bizwire) — LG Innotek Co., an electronic component manufacturing unit of LG Group, said Wednesday its first-quarter net profit tumbled nearly 40 percent due to waning demand and intensifying competition.
In a regulatory filing, the company reported a net income of 85.6 billion won (US$60.1 million) for the January-March period, down 38.2 percent from 138.6 billion won a year earlier.
The sharp decline came despite a rise in sales, which jumped 15 percent on-year to 4.98 trillion won, the highest reading for the first quarter in the company’s history.
Operating income tumbled 28.9 percent on-year to 125.1 billion won.
LG Innotek, a core supplier of camera modules to Apple Inc.’s iPhone, attributed the weak bottom line to a slowdown in global electric vehicle (EV) demand and intensifying competition in the optics industry.
Its operating profit is 3.3 percent lower than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
(Yonhap)
