LG 2002 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2002 LG annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 42

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42

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 impressive 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-edge 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 leadership for the third consecutive year. LGE-made air conditioners captured the leading
market share in 32 countries, including 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 efficiency 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 appliances were also exceptional, recording a
healthy 12.9% gain thanks to the timely release of state-of-the-art products, such as DIOS refrigerators
equipped with cutting-edge linear compressor, super-size washing machine TROMM, commercial A/C
systems 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.
Outlook
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,
LG Electronics Inc. IAnnual Report 2002 I24 25
Backed by its superior product quality, LGE launched a br and-name offensive
in the high-end mar ket of Nor th America, r einforcing our position as a top-
tier br and.
Ssang-Soo Kim
Head of Digital Appliance
Despite market uncertainties, We are determined to expand its global reach by
capitalizing on a value-oriented and “fast-growth” strategy.
LG전자 - 본문 2003.4 .22 7:14 AM 페이지28