LG 2001 Annual Report Download - page 9

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LG Electronics achieved an
overall 12% growth in sales,
reaching 16.6 trillion won,
with a 507.3 billion won net
profit.
3
America Eurpoe Asia Others
LG Electronics Inc. The
43
rd Annual Report
Message from CEO
A Message to Our Shareholders
I would like to take this opportunity to express my appreciation for your support for
LGE over the last fiscal year, as well as to extend sincere congratulations for being a part of
the ongoing success that LGE has worked hard to enjoy. The year 2001 was a difficult one
for international business, as the global economy, amid an array of uncertainties, took a
downturn. I am proud to say that despite these adversities LGE managed to achieve its
business goals and prove its strength in the increasingly-competitive global market.
2001 Review
As an indication of this strength, LG Electronics achieved an overall 12% growth in
sales, reaching 16.6 trillion won, with a 507.3 billion won net profit. We feel confident that
in 2001 we solidified our position as a technology leader in the areas of digital products
and telecommunications equipment.
Performance by Sectors
Gains in 2001 were evident in a variety of sectors. With a 28% increase in sales and a
12% operating profit, Digital Appliance Company performed splendidly and reinstalled itself
as a reliable money-maker for LGE, helped by depreciation of the won and increasing
brand recognition. Mobile Handset Company through successful customization and
differentiation, grew 57% over last year. The overall telecommunications sector, including
Telecommunication System Company, posted an increase of 27%.
These successes, though laudable, should not lead to complacency, and with Digital
Display&Media Company we were reminded that LGE is not totally immune to the effects
of global economic uncertainty. This company, closely related to the recently troubled IT
industry, had a difficult year, with negative growth and an operating profit of 2.7%.
Sales by Region
Taking a regional look at sales in 2001, we saw a 25% increase in the Korean market,
despite the slowdown of the 2nd half. The importance of this domestic growth should not
be overlooked, as it is the backbone of our success. Exports to the US market, buoyed by
the dramatic growth in handset shipments, soared 23% over the previous year. These gains
Unit
：
Million U.S.D / FOB Standard
2001 2000 1999
North America 2,863 2,326 2,023
Latin America 519 470 319
China 1,038 1,526 1,017
Asia & Oceania 1,273 1,784 1,557
M. East & Africa 641 620 525
EU & others 1,248 1,325 946
CIS 192 239 202
Sales by Region
Sales by Region
1999
2000
/ Unit : %
2001
36
34
44
14 47
2
3
47
38
16
16