LG 2004 Annual Report Download - page 23

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LG ELECTRONICS ANNUAL REPORT 2004
022
023
In 2004, we achieved KRW 6.2 trillion
in sales, a 10% increase from last year, despite a
slowdown in domestic sales caused by
stagnation in the Korean economy. Hard work
yielded breakthroughs in the Indian, North
American, and European markets, increasing
our overseas sales by 14%. Premium digital
home appliances such as TROMM washing
machines, and side-by-side refrigerators led this
foreign expansion.
Our refrigerator export sales greatly
increased when compared with domestic sales.
Successful launches of high-valued premium
products like side-by-side refrigerators in North
American and European markets were major
sources for this growth. We also focused on
finding mid and long-term growth drivers by
releasing new premium products, such as three
door refrigerators, in the second half of 2004.
Our air-conditioner sales were up 15%
over the previous year due to the combination
of a marked increase in overseas sales, and a
hot summer which boosted sales in the
domestic market. It didn't hurt that our
residential air-conditioners have been ranked
the number one product in the global market
for five years now. With this technological and
product leadership, LG Electronics diversified its
business structure by advancing into the
commercial air-conditioner market. This will
boost our mid- and long-term growth
momentum, and future success.
While domestic sales were somewhat
slow, exports of washing machines grew
remarkably in 2004. This resulted in a 25%
growth in our washing machine business.
Much of the credit for this achievement can be
attributed to the excellent technology of the
TROMM washing machine and sales increase of
dish washers and driers in the European and
North American markets. In particular, our
drum washing machine reached a milestone in
the North American market, occupying nearly
50% of the market share of drum washing
machines, within Best Buy, which has
distribution network throughout North
America.
In 2004, our cooking appliance
business was restructured, and saw decreased
sales, both at home and abroad. Much of this
revenue reduction stemmed from the moving
overseas of our production bases to improve
our overall cooking appliance business structure
and the recall of the IH rice cooker.
TV Refrigerator
The world's first refrigerator with TFT LCD TV / Maximizing
consumer efficiency by combining side-by-side refrigerator
with LCD TV / Solving the problem of radiant heat with
multidimensional cooling system / Drawing keen attention
from the world's press in a variety of International
expositions
03 04
2.0 6.2
1.9
5.6
4.2
3.7
03 04
497
448
1Q 2Q 3Q 4Q
1.8
1.3
1.7
1.4
Sales
(in trillions of Korean won)
■Domestic
■Export
Operating Profit
(in billions of Korean won)
Quarterly Sales
(in trillions of Korean won)