LG Innotek Q3 profit drops 25.8% as currency swings hit earnings

LG Innotek Co., part of LG Group, announced that its third-quarter net profit fell to 95.2 billion won, a 25.8% decrease from a year earlier, due to exchange-rate volatility. The company explained that a weaker won during the first half raised raw-material costs, but a stronger won later reduced margins as production ramped up. Operating profit declined sharply by 53.4% to 94.8 billion won.

Despite the profit squeeze, sales climbed 18.6% to 6.36 trillion won, surpassing the 6-trillion-won mark for the first time in a quarter. Revenue growth was broad-based, with the optical solutions division posting 5.4 trillion won in sales, up 20.6%, driven by higher shipments of high-value camera modules for smartphones and increased automotive camera deliveries to North America.