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| Business Scope |
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| Area |
Research, development
and production of home appliances in general |
| Location |
Korea |
| Changwon1 |
Changwon2 |
| Gimhae |
GumiMGT |
|
| Overseas |
| LGETA(Tianjin,China) |
LG ECT(Taizhou,China) |
LGEPN
(Nanjing, China)
|
LGEQH
(Qinhuangdao, China) |
| LGEIL
(New Delhi, India) |
LGETH
(Rayong, Thailand) |
| LGENE
(Newcastle, U.K.) |
LGEMH
(Haiphong, Vietnam) |
| LGEAT
(Istanbul, Turkey) |
LGEMM(Monterrey,
Mexico) |
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| Performance
Overview |
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| Review |
Driven by the strong growth of
premium products, including popular washing machine and refrigerator
models, LGE
sales of digital appliances in 2002 were up a sharp 21.7% over
the previous year, totaling 6.04 trillion won. This impr
essive performance, augmented by vigorous cost-saving 6 Sigma
activities launched in and out of Korea, enabled the
Digital Appliance Division to attain a remarkable 10% operating
profit margin.
Domestic sales of the Digital Appliance Division grew sharply
by 32.7% in 2002, led by the past-growing popularity
of next-generation consumer appliances, including washing machine 'TROMM' vacuum cleaner "Cyking" leading-ed
ge refrigerator "DIOS" and Kimchi refrigerator "1124".
LGE marked a noteworthy milestone in the field of air conditioners
in 2002 as the company maintained its global leader
ship for the third consecutive year. LGE-made air conditioners
captured the leading market share in 32 countries, in
cluding Russia, Saudi Arabia, India and Panama. Of special note,
WHISEN (Model: M1003L) was designated a "BEST
BUY" by the highly regarded U.S. Consumer Report in July 2002
for its superior product quality in terms of energy eff
iciency and reliable performance.
Microwave ovens also turned in an outstanding performance with
sales totaling 12 million units in 2002, vaulting LGE
into the top spot in the global oven market, including China.
During the year under review, overseas sales of digital ap
pliances were also exceptional, recording a healthy 12.9% gain
thanks to the timely release of state-of-the-art produc
ts, such as DIOS refrigerators equipped with cutting-edge linear
compressor, super-size washing machine TROMM,
commercial A/Csystems and a new-concept Light Oven.
Moreover, sales during the fourth quarter were up by a hefty
30% over the same period of 2001, driven by the rapid
gains of premium products. |
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| Outlook |
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Prospects for
the global economy are especially volatile over concerns
of a war in Iraq and North Korea's nuclear ambitions.
On the domestic front, worsening market conditions are
forecast as well due to continued weakness in consumer
sentiments. This heightened adversity and uncertainty
will force corporations in general to adopt a more cautious
approach to their business operations. Nevertheless, the
Digital Appliance Division is committed to further expanding
its global reach by capitalizing
on a value-oriented and fast growth strategy.
The Division will thus commit all available resources
to leveling up its market hares in various fields through
market-driven efforts centered on higher value-added products,
including TROMM, DIOS, and commercial A/C systems. Further
more, we will intensify efforts to enhance our brand value
by means of innovative marketing activities tailored to
individual market characteristics.
Investment in Home Network and core components will be
aggressively xpanded, hereby enabling the company to put
more market-leading products with highlevel price competitiveness
into the hands of consumers. In order to optimize its
operational excellence, LG Electronics will invigorate
its cost-cutting 6 Sigma and DMS (Digital Manufacturing
System) initiatives, while rapidly and lexibly responding
to market trends by dint of efficient management of its
global production network. |
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