ID :
44886
Tue, 02/10/2009 - 10:07
Auther :
Shortlink :
https://www.oananews.org//node/44886
The shortlink copeid
LG Elec won't reduce spending in 2009, but cuts costs
By Kim Young-gyo
SEOUL, Feb. 9 (Yonhap) -- South Korea's LG Electronics Inc. said Monday it will not reduce spending this year as it aims to boost its competitiveness amid the worldwide recession.
"Every company -- not just LG -- has been affected negatively by the economic
downturn," LG Electronics vice chairman and CEO Nam Yong said at a press
conference.
"Amid the economic recession, LG Electronics has been fortunate as our exports
have been steady due to a weaker Korean won," he said. "We are focused on
increasing (the company's) competitiveness, regardless of the economic climate,
by reshuffling its business portfolio and raising longer-term growth potential
and profitability."
The world's third-largest mobile phone maker will continue to invest in future
growth engines such as solar power, air conditioners and commercial displays, Nam
said.
LG Electronics spent around 2.4 trillion won (US$1.74 billion) last year for
research and development (R&D) and for the expansion of facilities.
The company will stick to its premium brand strategy this year for its handsets,
especially to improve its presence in emerging markets, Nam said.
"We have set ourselves a target of first capturing a high-end segment, which
composes 30 percent of the market, and expanding to the other segments," he said.
"Our presence is weak in four regions -- China, the Commonwealth of Independent
States, the Middle East and Africa, and Asia," Nam added. "We will maintain the
competency we have achieved in developed countries in terms of building the brand
image. This global recession may provide us with good opportunities, and we are
going to make full efforts."
The company said it is also targeting a reduction in expenses of 3 trillion won
in 2009 by improving its procurement system.
LG Electronics said last month it swung to a loss in the fourth quarter of 2008
due to slower sales of flat screen televisions and mobile phones.
Net losses amounted to 671 billion won in the October-December period, compared
with a profit of 621 billion won a year earlier.
For the full year of 2008, LG Electronics posted a profit of 483 billion won, a
61-percent drop from a year earlier.
SEOUL, Feb. 9 (Yonhap) -- South Korea's LG Electronics Inc. said Monday it will not reduce spending this year as it aims to boost its competitiveness amid the worldwide recession.
"Every company -- not just LG -- has been affected negatively by the economic
downturn," LG Electronics vice chairman and CEO Nam Yong said at a press
conference.
"Amid the economic recession, LG Electronics has been fortunate as our exports
have been steady due to a weaker Korean won," he said. "We are focused on
increasing (the company's) competitiveness, regardless of the economic climate,
by reshuffling its business portfolio and raising longer-term growth potential
and profitability."
The world's third-largest mobile phone maker will continue to invest in future
growth engines such as solar power, air conditioners and commercial displays, Nam
said.
LG Electronics spent around 2.4 trillion won (US$1.74 billion) last year for
research and development (R&D) and for the expansion of facilities.
The company will stick to its premium brand strategy this year for its handsets,
especially to improve its presence in emerging markets, Nam said.
"We have set ourselves a target of first capturing a high-end segment, which
composes 30 percent of the market, and expanding to the other segments," he said.
"Our presence is weak in four regions -- China, the Commonwealth of Independent
States, the Middle East and Africa, and Asia," Nam added. "We will maintain the
competency we have achieved in developed countries in terms of building the brand
image. This global recession may provide us with good opportunities, and we are
going to make full efforts."
The company said it is also targeting a reduction in expenses of 3 trillion won
in 2009 by improving its procurement system.
LG Electronics said last month it swung to a loss in the fourth quarter of 2008
due to slower sales of flat screen televisions and mobile phones.
Net losses amounted to 671 billion won in the October-December period, compared
with a profit of 621 billion won a year earlier.
For the full year of 2008, LG Electronics posted a profit of 483 billion won, a
61-percent drop from a year earlier.
