LG Innotek aims big

By Kim Yoo-chul

LG Innotek, the LG Group's component-making affiliate, is seeking business expansion this year, expecting demand for high-end digital devices such as smartphones will recover from last year.

In a statement, Friday, Innotek said it is aiming to reap 5.3 trillion won or some $4.7 billion in sales this year, an increase of 29.2 percent from 2010. The company is upbeat on the growth prospects of its light-emitting diode (LED) related businesses.

The firm is planning to invest 760 billion won in facilities capitalizing on LED light-bulbs, and solar-cells.

``This year is more than crucial for Innotek to lift our LED business,’’ said company spokesman Jung Jae-wook, adding sales of these exceeded 1 trillion won.

LG Group, the nation’s fourth-largest conglomerate, has realized vertical integration of its display-related businesses. LG Electronics produces finished products with flat-screens from LG Display and components supplied by LG Innotek.

Separately, Innotek said it saw 4.10 trillion won in sales and 156 billion won in operating profit for last year on a consolidated basis, which includes the performance of its overseas units, an increase of 67 percent and 205 percent, respectively, from the previous year.

But it posted an operating loss of 36 billion won during the fourth quarter hit by weaker demand for consumer products and rising inventory.

Quarterly sales also decreased by 2.4 percent to 1.13 trillion won quarter-on-quarter. On a yearly basis, it saw an increase of 58.1 percent, Innotek said in a regulatory filing with the Korea Exchange.

Innotek supplies camera modules to consumer electronics majors such as Apple and Motorola in the United States, while supplying LED chips to top-tier television makers.

It competes with Samsung Electro-Mechanics, the Samsung Group’s parts-making unit.