LG expects 40% jump in
Middle East and Africa revenues
Saturday, July
19, 2008
Dubai: LG
Electronics expects to record $4.5 billion
(Dh16.52 billion) in revenues from Middle East
and Africa (MEA) operations in 2008, an increase
of more than 40 per cent compared to $3.2
billion (Dh11.74 billion) last year, company's
CEO said.
"Our strategic change from the 'Blue Ocean'
management style to 'go to market' concept has
reaped rich harvest. We go to the market and
look for what consumer and market wants. We are
doing a lot of researchers and studies and we
listen to our customers and change according to
their demands and needs," K.W. Kim, President
and CEO of LG Electronics Middle East and Africa
Regional Company, said.
In the first quarter, the South Korean vendor
recorded $1 billion (Dh3.67 billion) in revenues
from the region. Out of this, $400 million
(Dh1.47 billion) came from the Gulf.
He said robust demand for healthcare products
combined with strong sales of TVs and mobile
phones contributed to the excellent performance
in the first quarter.
"This is the second year of launching healthcare
products and we will be boosting our image this
year. Last year we launched six healthcare
products and this year we are going to focus
more it as the construction boom is demanding
more eco-friendly products," he said.
In first quarter, Digital Display Company sales
jumped 32.1 per cent to $3.81 billion (Dh13.99
billion) powered by rise in sales of flat TVs
and monitors; LCD TVs 82 per cent, Plasma TVs 18
per cent and monitors 30 per cent from a year
earlier. PDP module sales grew 17 per cent on
year dues to the company's demand in plasma TVs
and 32 inch line-ups to the company and other
vendors. Operating profit successfully recovered
to $1 million (Dh3.67 million).
"The LCD monitors sector is undergoing constant
development and demand is increasing especially
on big size commercial products," Kim said.
LG Electronics said it will consolidate its
market-leading position in the Middle East and
Africa commercial display business by targeting
high-traffic areas such as airports, malls and
hospitals.
"In the Middle East and Africa, the commercial
display market continues to evolve, with
increased needs for advanced functionality and
connectivity in a reasonably priced package," he
said.
The company, which occupies 20 per cent market
share in LCD TV segment, expects 40 per cent
growth in LCD TV sales this year. LCD TVs
contribute seven per cent to the group's
revenue.
