LG 2006 Annual Report Download - page 13

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Dear Shareholders, Customers, and Business Partners:
On behalf of all employees at LG Electronics, I would like to express my sincere
thanks to you for the support that helped make 2006 another milestone year.
We had another strong growth year, capping off almost 20 years of double-digit
revenue increases. At the end of 2006, our presence and reach spanned the
world, and we are now one of the leading global consumer electronics companies.
Consumers around the world enjoy our innovative and exciting products in just
about every corner of their lives-trend-setting mobile phones, flat panel TVs,
refrigerators, washing machines, computers, and many others. While we continued
to build our global presence, sales, and brand in 2006, it was a mixed year for us
in terms of overall financial performance. Our revenues were up 11% to $38.5
billion, but operating prot fell from $1.2 billion to $883 million, a drop from 3.5%
to 2.3%. By business unit, Digital Appliances continued to perform well, on the
strength of innovative, premium products such as the Steam Washer. Our Mobile
Communications division also ended the year with strong momentum, driven
by steady penetration into open markets and strong sales of 3G phones and hit
products such as the Chocolate phone. However, the unexpected, sharp declines in
Plasma TV prices in the second half of 2006 took a bite out of prots. Going into
2007, we are more optimistic about the industry outlook in our product segments,
especially in Mobile Communications and Digital Appliances. But we expect that
Digital Displays will face another challenging year. As such, we are focusing our
business strategies to successfully address the opportunities. You will see many
more innovative products that bring technology and design to consumers around
the world. Additionally, all our managers are working hard to align the enthusiasm
and dedication of our employees with these strategies.
LG ELECTRONICS
CEO MESSAGE
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