LG Innotek posts record Q3 sales, but profit misses forecasts

What happened: LG Innotek reported record third-quarter sales but operating profit fell 53.4 percent from a year earlier, missing analyst forecasts. Key numbers: Operating profit 94.8 billion won ($71.5 million) versus a 197.3 billion won FnGuide forecast. Why it matters: The company blamed a sharp won-dollar exchange rate decline between raw-material purchases and shipments. Analysts expect cost pressure to ease in the fourth quarter, and expanding semiconductor substrate earnings is seen as critical to reducing dependence on smartphone cameras.

LG Innotek reported record third-quarter sales but operating profit fell 53.4 percent from a year earlier, missing analyst forecasts.

The company blamed a sharp won-dollar exchange rate decline between raw-material purchases and shipments. Analysts expect cost pressure to ease in the fourth quarter, and expanding semiconductor substrate earnings is seen as critical to reducing dependence on smartphone cameras.