LG reports 20% sales growth

Korean giant, LG Electronics, has announced a first half 2006 turnover of almost US$1.36 billion for its Middle East and Africa markets, representing a 20% growth in sales compared to the corresponding period last year.

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By  Michael Thorne Published  August 6, 2006

Korean giant, LG Electronics, has announced a first half 2006 turnover of almost US$1.36 billion for its Middle East and Africa markets, representing a 20% growth in sales compared to the corresponding period last year. Core growth areas include the company’s LCD business, which it claims jumped a massive 217%, its GSM handset segment, which grew by 62% and it’s PC division, which recorded a 38% increase in revenues compared to H1 2005. LG Electronics announced that it had achieved its biggest volume growth in air-conditioners (US$385 million), televisions (US$165 million) and refrigerators (US$135 million). The digital appliances sector also showed a strong recovery, registering a 24% growth while the digital media division and digital display segment grew by 19% and 5% respectively. “We are on track to achieve and even surpass our 2006 sales target of US$2.7 billion,” explained LG Electronics’ president, MEA, K. W. Kim. “Our aggressive implementation of the ‘blue ocean’ management strategy, combined with our continuous emphasis on technological and design innovation, is one of the main factors for this unprecedented growth.” The company claims that its ‘blue ocean’ strategy allows it to steer clear of price wars in a competitive market, focussing on premium products that offer added value to consumers. LG has set out plans to double its sales volume, profit and shareholder benefit by 2010, with 30% of its sales volume and 50% of its profit coming through ‘blue ocean’ products, it claims. “Due to the encouraging response to our plasma TV and mobile segments, we are confident in our ability to continue to grow globally,” Kim explained. Last year, LG maintained its world number one position for CDMA handsets, residential air conditioners, DVD players, optical storage devices, home theatre systems and TVs. It was also number two for PDP TVs and modules, with a market share of 15% and 27% respectively.

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