South Korea's LG Electronics Inc. is targeting a 20 percent increase in sales at its home appliances unit next year and aims to nearly double its air-conditioner sales by 2007, a senior executive said.
LG plans to raise output from its overseas plants to offset the impact of a firmer won currency, said Lee Young-ha, chief executive of the firm's home appliances unit.
"The stronger won and raw material shortage due to high demand from China and India pose threats to our profitability," Lee said. "Focusing on high-end products is the only way to survive."
LG is targeting annual air-conditioner sales of U.S. $5.2 billion in 2007 and $7 billion in 2010, against $2.8 billion estimated for 2005.
Lee also said the company aimed to raise its overall home appliances sales by 20 percent in 2006 from about $10 billion expected for 2005.
The unit is targeting an operating margin of about 8 percent next year versus 7 percent this year, Lee added.
LG is the number three producer of household appliances in revenue terms, behind Sweden's Electrolux and Whirlpool Corp. of the U.S.
The home appliances division contributes about a quarter of the revenue of LG Electronics. (Reuters)
to Daily News