(2nd LD) LG Electronics eyes global sales of 59 tln won in 2010

(ATTN: ADDS share price and analyst's comment in last 3 para)
By Lee Youkyung
SEOUL, Jan. 7 (Yonhap) -- LG Electronics Inc., the world's third-largest mobile
handset maker, said Thursday that it has set this year's global sales target at
59 trillion won (US$52.03 billion), up around 10 percent from last year.

LG, also the world's second-largest flat-screen TV maker, will invest 1.5
trillion won in infrastructure this year, up from 0.9 trillion won in 2009, the
company said in a release.
The company's outlays for research and development (R&D) are projected to rise to
2.1 trillion won this year from 1.7 trillion won in 2009, it added. All figures
are consolidated, meaning they include overseas affiliates.
The sales target is estimated at a currency rate of 1,150 won per dollar.
"There is much uncertainty in the economy this year, but we will increase
investment in R&D, branding and design areas," Nam Yong, LG's chief executive
officer, told reporters in a meeting in Las Vegas ahead of a global trade show.
He said most of the planned infrastructure investment will be spent on ramping up
the production of solar batteries and improving the performance of overseas
affiliates.
Investment in R&D will focus on developing three-dimensional televisions,
renewable energy and next-generation mobile phones, Nam added.
Analysts said the 10 percent yearly growth target in global sales is within LG's
range as its performance in the liquid-crystal-display (LCD) TV sector is likely
to offset an expected decrease in profits from the company's handset division.
"LG's TV division has consolidated its position in the global LCD TV market," said
Kim Woon-ho, an analyst at Prudential Investment & Securities in Seoul. "It is
doing especially well in Europe."
Shares of LG Electronics, however, closed down 7.63 percent from Wednesday's
close at 115,000 won on the Seoul bourse, the largest daily drop in four months.
Shares of LG lost ground as the recent release of Google's Nexus One phone
triggered concerns about the competitiveness of LG's phone business, analyst
said.
ylee@yna.co.kr
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