LG 1999 Annual Report Download - page 4

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2
0
CONFIDENCE
A Solid 7% Increase in Revenues and a Rocketing 1,690% Increase in Net Income
Our emergency management kept up from last year brought us remarkable cost reduction, quality improvement, expanded exports, higher profits,
and increased sales in value-added high-end products. We therefore wrote revenues of
￦
10,546 billion, a 7% increase over the previous year,
and our net income rocketed to
￦
2,005 billion, a 1,690% increase.
Increased Revenues from Overseas and Enhanced Global Management
Despite the fluctuating financial market overseas and continuous won appreciation and price drops, we realized a 24% increase to
￦
7,842
billion in revenues from overseas, making up 74% of our total revenues. This growth rate was made possible by effective marketing activities and
steady sales of the high-value-added products like our perfectly flat TVs and PC monitors, CD-ROMs, and air conditioners.
Successful Restructuring and Portfolio Reshuffling
We sold company-held assets and stocks, especially unprofitable assets and sluggish stocks, wound up non-performing and insolvent businesses,
and restructured the company into three separate companies. In the process we lowered our debt-to-equity ratio to 185% , giving the company
sounder financial health. Meanwhile we normalized the operation of our U.S. subsidiary Zenith, a costly acquisition, which enhanced our strength
in the North American market.
Development of Core Digital Technologies and Their Commercialization
We invested technological resources and capital in digital TVs and PDPs. We integrated several core ICs onto one chip and commercialized our
North American-standard HD TVs, Korean-standard digital TVs, and 40" PDPs. Our brand-new electronic tubes, optical storage devices, and new-
concept air conditioners gave us a competitive edge in those fields.