LG 2004 Annual Report Download - page 9

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Best business results in 2004
In 2004, due to a remarkable growth in exports, LG Electronics recorded the highest gross sales figure ever.
This represented a 22% increase to KRW 24.7 trillion, and demonstrated our increasing global reach. Both
operating and ordinary income stood at KRW 1.3 trillion and KRW 1.9 trillion respectively. In addition, net
income came to KRW 1.6 trillion. These figures represent the best business performance in our history, and
reflect growth in multiple divisions.
Sales from the Mobile Communications Division were up 55% from last year, reaching a total of
KRW 9.5 trillion. Handset sales increased greatly in Europe and North America, with sales revenues of KRW
8.4 trillion. This was a remarkable 61% increase over the previous year. Our handset business has achieved
a growth rate of more than 45% for five years in a row. This is the highest growth rate realized by any of the
world's leading handset manufacturers.
Sales revenue from the Digital Display Division grew 19% to a record KRW 5 trillion. The growth
was driven mainly by strong sales in both digital TV and PDP. The Digital Media Division saw sales revenue of
KRW 3.8 trillion. This was a 7% decrease from last year, largely due to the removal of the PC OEM business.
If PC sales are excluded, the sales revenue in the Digital Media Division would instead show a growth of
17%. Digital Appliance Division sales increased 10% to KRW 6.2 trillion. A surge in premium products such
as air-conditioners and drum washing machines fueled the overall growth. For five consecutive years, LG
Electronics' air-conditioners have been the number one sellers in the world's appliance market.
We at LG Electronics would like to express our heartfelt thanks to our shareholders and
customers. Your continued support, affection, and encouragement have been of great
help as we move ever closer to becoming one of the world's top three electronics and
telecommunications firms.
2004 was a significant year for us, as we laid a strong foundation for future growth. We
unveiled a new vision we call "Global Top 3 by 2010". In moving towards the
fulfillment of that vision we have instituted a broad range of innovations throughout
our management system. Thanks to these efforts, LG Electronics has achieved its best
business performance ever. This remarkable performance was achieved despite a
number of difficulties. Obstacles we overcame this year included long-term stagnation
of domestic consumption, a drastic increase in the price of oil, the fluctuation of raw
material prices, a decrease in product prices, and a steep upturn in the Korean
currency's value.
Great Company,
Great People