LG Reports Home Appliance Revenue Up 23 Percent
Mar 29, 2004
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South Korea's LG Electronics Inc. reported it expects global revenue from sales of home appliances to jump 23 percent in 2004 from a year ago. Young-Ha Lee, chief executive of LG's Digital Appliance Company, said he expected sales from the business to rise to U.S. $8.5 billion in 2004 from $6.9 billion in the previous year.
"Operating profit (margin) would be 10 percent (of home appliance sales). It was 8 percent last year," said Mr. Lee. LG Electronics is a top South Korea home appliances maker and the one of the world's largest manufacturers of air-conditioners and microwave ovens. The home appliances business contributes nearly 30 percent of the company's revenue.
Mr. Lee announced the company faced pricing pressure, especially in the air-conditioning segment in China, but was attempting to neutralize that by launching high value products.
LG's Indian unit, LG Electronics India Pvt Ltd., said it expects its revenue in 2004 to surge 56 percent to 70 billion rupees (approx. $1.59 billion) from the previous year, helped by a strong economy.
Lee said the contribution of the Indian unit to global revenue was expected to rise to 15 percent by 2007 from 5 percent in 2003. (Reuters)
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