LG 2002 Annual Report Download - page 16

LG Electronics Inc. IAnnual Report 2002 I28 29
Review
Bucking the trend related to the continued stagnation of the global IT industry, the Display and Media
Division enjoyed excellent operating results in 2002, primarily attributable to the 2002 World Cup finals
that sparked immense demand for home electronics. Sales advanced 17.2% year on year to 7.9 trillion
won, with domestic sales jumping 18.1%, while sales outside of Korea rose 16.9% as well. As a result,
the share of Digital Display & Media Division moved up to 42.7% of total sales. Other factors
contributing to its outstanding sales performance included upgrades in the technology and price
competitiveness of various products, added sophistication of business lines and the 6 Sigma activities.
By sector, the Optical Storage business solidified its worldwide leadership position through the release
of highly-performance products, such as high-speed CD-RW and Combo Drive, while enhancing the
competitive advantages of other products. The Digital TV business recorded equally impressive sale
results with Xcanvas; the Audio-Visual business with DVD COMBI; and the Home Theater business with
DVD Receiver. Overall, new digital products registered robust sales growth in 2002. In particular,
demand for PDP units, a new business line, expanded substantially as a result of its proven quality and
cost-competitiveness, such that an additional PDP production line is now in the works.
Outlook
Business conditions for 2003 will likely remain turbulent, due to such factors as the war in Iraq, oil price
hikes, unfavorable exchange rates and delayed recovery of the global IT Industry. Simply put, the
business environment is likely to worsen in 2003, however, we will squarely face up to the challenges to
achieve our management targets.
Our efforts will be centered on the following three action points:
First, efforts will be focused on bolstering our “ product leadership” in response to the ever-intensifying
global competition. This effort requires further improvement in our cost structure and differentiation of
product design including harmonization of digital technology and analog systems.
The Display and M edia business enjoyed excellent operating r esults in
2 0 0 2 . In par ticular, the Division consolidated its No. 1 global mar ket position
in the optical storage market, thr ough introduction of new pr oducts such as
high-speed CD-RW and Combo Dr ive.
Nam K. Woo
Head of Digital Display & Media
We will endeavor to bolster our “product leadership,” “market leadership” and
“operational excellence” in 2003 in an effort to overcome the challenging business
environment.
LG전자 - 본문 2003.4 .22 7:14 AM 페이지32