LG Sales Up by 20 per cent

By Godfrey Tung'wet Posted 17 August 2006 @ 03:28 pm EET     Print     Reprint     E-Mail     Comments

NAIROBI (IBTimes.com) - LG Electronics announced a 20 per cent rise in sales in Africa and the Middle East.

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The firm’s regional President, Mr K W Kim, said turnover for the first half of the year climbed to $1.4 billion.

Kim pointed out that growth was due to a 217 per cent growth in the liquid-crystal display (LCD) television product line. A 62 per cent leap in GSM mobile handsets sales and a 32 per cent growth in the personal computer division also contributed to the improved performance.

The company performed well locally, with the liaison office general manager, Won Woo Na, predicting a 30 per cent growth this year.

Marketing manager Mr George Mudhune attributed the expansion of the local market to the rise in numbers of middle and high-income earners.

The local LG distributor, Hotpoint Appliances, also reported a 20 per cent rise in sales for the period under review. Locally, the company controls 58 per cent of the plasma screen television market and 75 per cent of the commercial air conditioners market.

The emphasis on technological and design innovation has been cited as a reason for LGs unprecedented growth. LCD models are expected to account for 18 per cent of television sets sold globally in 2008, up from 2.2 per cent in 2003.

"We are on track to achieve and even surpass our 2006 sales target of $2.7 billion," said Kim.

Kim noted LG will achieve the target by focusing on premium products to increase the company’s sales volume by 30 per cent and profit by 50 per cent.