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LG Electronics Inc._Annual Report 2003 9
Towards Global Top 3
To our Shareholders,
On behalf of everyone at LG Electronics, I would like to extend my sincere gratitude to you
all for your continued interest and support.
RESULTS FOR THE YEAR 2003
Despite a slow global economy and delayed IT industry recovery in 2003, LG Electronics
reached a new milestone with sales surpassing 20 trillion won, expanding 18% from the
previous year. All three of our companies contributed to such remarkable growth. Our
globally recognized Digital Appliance Company posted another strong year while sales
increased significantly in our Digital Media & Display Company, bolstered by 186% YoY
growth in PDP sales. We are excited about the potential of PDPs going forward. In our fastest
growing business, Telecommunication Equipment & Handset, sales soared 37% YoY buoyed
by a 47% increase in handset sales. Overseas expansion was the driving force behind such
impressive growth.
More importantly, our 32% growth in exports is another brick in fortifying our position as a
major global player in the near future. In addition, our 1.62 trillion won in operating profit,
up 33% from the previous year, and 662.8 billion won in net profit demonstrates our
strengthening fundamentals.
The root to our success can be traced back to the localization of the vacuum-tube radio in
1958. Today, LG Electronics is not only a global leader in home appliances but we are also at
the forefront of such cutting-edge products as digital TVs, PDPs, and mobile handsets. LG
Electronics may have started with simple technology, but we have become a world leader in
the areas of electronics and information technology. Moreover, we believe that we will be
able to achieve our goal of making LG Electronics into one of the Global Top 3 companies in
the near future.
STRATEGIC DIRECTION TO GLOBAL TOP 3
We believe that LG Electronics has established a strong foundation for long-term growth.
With 45 years of experience and development, we are on the verge of transforming from a
“Good Company” to a “Great Company.” Despite facing continuous challenges, we have
bolstered our globally competitive digital technology thanks to our talented employees. We
are now focusing on our global marketing skills and LGE’s brand power in order to make the
dream of becoming a “Great Company” into a reality.
However, there are many challenges to overcome. Our competitors in China are growing
rapidly and the global marketplace has never been tougher. Under these circumstances, we
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