LG 2000 Annual Report Download - page 33

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Results of Operations
S a l e s
LGE experienced favorable economic conditions both at home and abroad in 2000. The
Korean economy began to recover after a severe two-year setback. The U.S economy
continued to expand amidst concerns of an economic soft landing, while Western
European economies steadily advanced. Worldwide demand for media, information, and
communication devices and products increased dramatically.
LGE's total sales in 2000 increased to W14,836 billion, 40.7% higher than W10,546
billion in 1999 and 50.6% higher than W9,853 billion in 1998. Not taking into account
LGE's merger with LG Information & Communications (LGIC), whose operations have
been included in LGE since September 2000, total sales in 2000 were W13,760 billion,
30.5% higher than sales in 1999. This increase is attributable largely to the Digital
Appliance Company and the Digital Media Company. The Digital Media Company has
exhibited particularly strong growth for a second consecutive year with growth rates of
50.8% in 2000 and 31.1% in 1999. The Digital Appliance Company grew by 28.0% in
2000, compared with 13.3% in 1999.
With regard to sales timing, personal computers, air conditioners and optical storages
were major contributors in the first quarter while high value added products increased in
the second quarter. However, total sales were sluggish in the third quarter due to
decreased domestic sales of air conditioners and handsets. Handset sales were particularly
affected by the government's cancellation of telecommunication promotion subsidies to
mobile phone consumers.
Excluding LGIC sales, the Digital Media Company's share of total LGE sales increased
from 28.0% in 1999 to 32.4% in 2000. This expansion resulted mainly from improved
sales of optical storage products, which were heightened through outstanding brand
recognition and increased demand for CD-RW and DVD-ROM drives both domestically
and abroad. In the course of its efforts to secure a stable customer base, the Digital Media
Company supplemented its strong relationships with Compaq by adding a new IBM line.
Sales
LGE's total sales in 2000
amounted to W14,836
billion, a 40.7% increase
from the W10,546 billion in
1999. The Digital Media
Company has exhibited
particularly strong growth for
a second consecutive year
with growth rates of 50.8% in
2000 and 31.1% in 1999.
The Digital Appliance
Company grew by 28.0% in
2000, compared with 13.3%
in 1999
.
1999
4,205
3,032
2,953
-
356
10,546
2000
4,580
3,882
4,453
1,076
845
14,836
Sales
Digital Display
Digital Appliance
Digital Media
Information & Communications
Other
1998
3,815
2,677
2,253
-
1,108
9,853
In billions of Korean won
33