BUSINESS

LG Innotek projected to post two straight quarters of operating loss

By Kim Young-won
  • Published : Jun 17, 2016 - 17:12
  • Updated : Jun 17, 2016 - 17:13
[THE INVESTOR] Camera module maker LG Innotek’s second-quarter operating profit will likely miss the market consensus due to the lackluster sales performance of its partners that include U.S.-based Apple and LG Electronics, according to an investment report.

The Seoul-based LG Group affiliate is expected to post an operating loss of 20.4 billion won (US$17.4 million), far below the average of 10.8 billion won in operating profit forecast by a group of investment firms, according to Hana Financial Investment in its recent report.

LG Innotek’s camera modules.

LG Innotek’s second-quarter revenue will likely decline 10 percent, compared to the preceding quarter, the report said.

Handset makers such as Apple and LG that LG Innotek supplies to have been seeing sluggish sales of their respective phones, the iPhone and the G5.

However, analysts said LG Innotek will see its earnings soar in the latter half of this year thanks to the anticipated supply of its dual-lens camera, as rumor has it, to Apple.

“LG Innotek will gain growth momentum with the supply of its dual-lens cameras in the second half this year. Its optical solution business’ revenue in 2017 is forecast to increase 11 percent compared to this year with its operating profit jumping by 212 percent,” said Kim Ro-ko, a Hana Financial Investment analyst.

By Kim Young-won (wone0102@heraldcorp.com)