LG Innotek swings to loss in Q2 on weak demand

SEOUL, July 27 (Yonhap) -- LG Innotek Co., an electronics parts maker affiliated with South Korea's LG Group, said Wednesday that it swung into the red in the second quarter, joining an army of local electronics components suppliers struggling with weak global demand for consumer electronics.
Net loss amounted to 6.98 billion won (US$6.66 million) in the April-June quarter, compared with a 101.44 billion won net profit a year earlier, it said in a regulatory filing.
Sales rose 14 percent on-year to 1.17 trillion won while operating profit stood at 5.91 billion won, less than one-tenth of the year-earlier quarter.
The company, which makes light-emitting diode (LED) back light units for television makers, said that feeble TV demand pounded LED prices and weighed on profitability.
Low demand for displays, which go into TVs, PCs and mobile phones, dragged down the bottom line of the company, which supplies components for display panel makers.
ylee@yna.co.kr