LG 2004 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2004 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 129

  • 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
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129

Digital Appliance Division
Domestic sales of vacuum cleaners
were also slow due to Korea's sluggish
economic situation. During this time, our
business restructuring has also led to a decrease
in the export volume of vacuum cleaners.
However, we will improve our vacuum business
structure by moving our commodity production
base overseas and increasing the sales
contribution of premium products such as
CYKING vacuum cleaner.
In 2005, our overall business environ-
ment is expected to face both domestic and
international difficulties. This is primarily due to
continued stagnation in the Korean economy,
an unstable supply of raw materials, and
stringent environmental regulations worldwide.
Above all, the increasing value of the Korean
currency will directly impact the entire business'
profit growth. To counteract this decrease in
profitability due to unfavorable external factors,
LG Electronics will focus on stimulating
premium products sales in the global market, as
well as reducing costs. We will also strive to
make greater inroads into the European digital
appliance market. These efforts will help us
secure a stable profit margin in 2005.
2005 will become a vital year for
moving into a second stage of growth in our
Digital Appliance Division. We will channel our
energies towards promoting growth in overseas
markets. Aggressive marketing strategy will
make this possible.
Additionally, by strengthening our
core competency of research and development
we will continue developing top products that
stay ahead of customer demands. Securing
high-quality product leadership, as well as basic
cost competitiveness, is another of our goals.
We will also optimize our production responses
to conform to changing business environments.
Bearing all of these factors in mind, LG
Electronics will exert a maximum effort to
strengthen Six Sigma and TDR activities that
encourage continued innovation throughout
our management processes.
Young-Ha Lee
Head of Digital Appliance Division
TROMM
Reducing noise and vibration and strengthening durability by
adopting direct drive system / Improving washing power and
reducing the consumption of water and detergent by
adopting shower spray system / Reducing the washing time
and consumption of power / Facilitating the input and output
of laundry with large front door
Digital Appliance
* Others are excluded in total
Air Conditioner
Refrigerator
Washing Machine
Cooking Appliances
Vacuum Cleaner
Others
25
33
34
25
20
9
48
Contribution
to Sales
%
Contribution
to Operating
Profit
%
Product
Composition
%