LG 2004 Annual Report Download - page 27

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LG ELECTRONICS ANNUAL REPORT 2004
026
027
2004 was a difficult year for domestic
businesses due to stagnation in domestic
consumption, an increase in oil prices, the steep rise in
raw material prices, and a decrease in product sales
prices. In spite of this negative environment, the 2004
sales revenue for the Digital Display Division came to
KRW 5 trillion, up 19% from the previous year.
Sales increases in PDP and digital TVs are one
of the main contributors to this remarkable business
performance. Strong efforts were made to strengthen
the PDP and LCD TV sales in 2004. We globally sold
400 thousand PDP TVs. This represented a 196%
increase in sales over the previous year. This
outstanding performance led to our gaining second
place in global market share. We also sold 680
thousand LCD TVs, more than double the number sold
last year. Our position in the global LCD TV market rose
to fifth due to this doubling of sales. LG Electronics also
enjoyed greatly increased sales of its premium products
in the European market, and reinforced its business
base in the North American market as well. In
particular, our PDP and LCD TVs were introduced into
key electronic appliance distribution chains in the U.S.
including Best Buy and Circuit City.
Based on accumulated technological
expertise, and constant investment in research and
development, we released an array of products with
new technologies and functions this year. Examples of
this include the Company's launch of the world's first
71 inch PDP TV, containing XD engines which improve
the quality of streaming video, and our introduction of
the world's first 55 inch LCD TV with built-in digital
tuner. These innovative technological breakthroughs
greatly increased the worldwide recognition of LG
Electronics as a leader in the display field.
Sales of our PDP module surged because of
our aggressive marketing approaches and a fast
growing market. We achieved sales of 800 thousand
units in 2004. To satisfy the increased volume of sales,
we started operating the 3rd production line in April of
2004. This brought our production capacity up to 140
thousand modules per month. In terms of
technological advancements, we realized the world's
best contrast ratios through ceaseless efforts to
improve in-house research. In addition, LG Electronics
increased its cost competitiveness by commercializing
the world's first Single Scan technology for the XGA
model.
Our monitor sales revenue went up by 24%
over last year, thanks to the increase in sales volume of
LCD monitors and multi-functional monitor products.
The cumulative production volume of monitors
exceeded 100 million in 2004. Selling our monitors
through the Best Buy's nation-wide distribution
03 04
0.9
0.9
5.0
4.2
4.1
3.3
03 04
191
89
1Q 2Q 3Q 4Q
1.3
1.3
1.2
1.2
71 Inch Plasma HDTV (71PY10)
Offers1920x1080p ultra high definition (HD) resolution,
the highest resolution available at the present time / Uses
LG Electronics' own XD Engine to provide vivid and crystal
clear images / Offers the best premium products plated
in 24K Gold / Home theater system is plated in 24K Gold
combined with set-top box
Sales
(in trillions of Korean won)
■Domestic
■Export
Operating Profit
(in billions of Korean won)
Quarterly Sales
(in trillions of Korean won)