LG Electronics Analysis_en

FINANCIAL STATEMENT ANALYSIS

LG ELECTRONICS

PREPARED BY: EMAN SHORAB AND MANAR LULU

SUPERVISED BY: LECTURER: EMAD ABUSHAABAN

Part One

Executive Summary :

LG Electronics' innovative technologies, unique products, and cutting-edge designs are an investment in the future.

LG Electronics, Inc.(LG) is a global leader and technology innovator in consumer electronics, mobile communications and home appliances, employing more than 84,000 people working in 112 operations including 81 subsidiaries around the world. With 2008 global sales of $44.7 billion, LG comprises of five business units - Home Entertainment, Mobile Communications, Home Appliance, Air Conditioning and Business Solutions. LG is one of the world's leading producers of flat panel TVs, audio and video products, mobile handsets, air conditioners and washing machines.

LG's efforts continue to enhance the global presence of the LG brand and to maximize profitable growth. In particular, LG Electronics will focus on achieving profitable and sustainable growth in the mobile communications and home entertainment sectors to strengthen its leadership in the IT industry, while at the same time increasing its market share in the home appliance, air-conditioning and business solutions sectors.

Historical Background

History

50 years of innovation years from ( 1958-2008 )

Production divisions and it's main products

Office locations

LG >>> Life's Good

History ……

The history of LG Electronics has always been surrounded by the company's desire to create a happier, better life.

LG Electronics was established in 1958 and has since led the way into the advanced digital era thanks to the technological expertise acquired by manufacturing many home appliances such as radios and TVs. LG Electronics has unveiled many new products, applied new technologies in the form of mobile devices and digital TVs in the 21st century and continues to reinforce its status as a global company.

LG Electronics 50-year History ( The Story of LG Electronics )

1958 ..

Founded as GoldStar

1959 ..

Produce Korea's first radio

1960's ( 1960 – 1969 )

Produces Korea's first radios, TVs, refrigerators , washing machines, and air conditioners .

1962 ..

Exported Korea's first radios to the US and HongKong.

1965 ..

Produced Korea's first refrigerators .

1966 ..

Produced Korea's first black and white TV.

1968 ..

Produced Korea's first conditioner.

1969 ..

Produced Korea's first washing machines.

( 1970 – 1979 )

1974 ..

Listed on the Korea stock change.

1977 ..

Produced Korea's first color TV.

1978 ..

Surpassed USD 100 million in exports, a Korean industry first.

( 1980 – 1989 )

1980 ..

Established first EU sales subsidiary in Germany ] LGEWG [ .

1982 ..

Established US color TV plant in huntsillve, Alabama.

1984 ..

Surpassed KRW 1 trillion in sales for the first time.

1986 ..

Established European VCR plant in Germany.

1988 ..

Established sales and joint venture production subsidiaries in Thailand.

( 1990 – 1999 )

1991 ..

Established design technology center in Ireland.

1993 ..

Established a production and sales subsidiary in Huizhou. China ] LGEHZ [, beginning a full-scale advance into the Chinese market.

1995 ..

• Renamed LG Electronics .
• Acquires US-based Zenith Electronic.

1997 ..

• World's first CDMA digital mobile handsets supplied to Ameritech and GTE in U.S. Achieves UL certification in U.S.
• Developed 40-inch plasma TV and world's first DTV IC chipset.
• Established India production subsidiary ] LGEIL [ .

1998 ..

Develops world's first 60-inch plasma TV .

1999 ..

Establishes LG Philips LCD ] currently LG Display [ , a joint venture with Philips .

( 2000 – 2008 )

2000 ..

• Launches world's first Internet refrigerator
• Exports synchronous IMT-2000 to Marconi
• Wireless of Italy
• Significant exports to Verizon Wireless in U.S.
• Acquired operations of LG information and communications.

2001 ..

• GSM mobile handset Exports to Russia, Italy, and Indonesia ( commercialized asynchronous IMT-2000 communications equipment.
• Establishes market leadership in Australian
• CDMA market
• Launches world's first Internet washing machine, air conditioner, and microwave oven.

2002 ..

• Under LG Holding Company system, separates into LG Electronics and LG Corporation
• Full-scale export of GPRS color mobile phones to Europe.
• Establishes CDMA handset production line and R&D center in China .
• Commercialized world's first home network system.

2003 ..

• Enters Northern European and Middle East GSM handset market .
• Achieves monthly export volume above 2.5 million units (July).
• Top global CDMA producer .
• Developed world's first synchronous- asynchronous IMT-2002 mobile phone.
• Developed world's first 76-plasma TV.
• Launched world's first DVD rewriter compatible with all CD and DVD standards.
• Led US CDMA mobile phone market for the first time.

2004 ..

• EVSB, the next-generation DTV transmission technology, chosen to be the U.S./Canada
• Industry standard by the US ATSC
• Commercializes world's first 55" all-in-one
• LCD TV
• Commercializes world's first 71" plasma TV
• Develops world's first Satellite- and Terrestrial-DMB handsets
• Developed home cinema system with wireless speakers.
• Developed world's first mobile phone with T-DMB mobile TV reception.
• Led global CDMA mobile phone market for the first time.

2005 ..

• Becomes fourth-largest supplier of the mobile handsets market worldwide
• Develops world's first 3G UMTS DMB handset, 3G-based DVB-Hand Media FLO
• DMB Phone with time-shift function and DMB notebook computer
• Launched world's first notebook with T-DMB reception.
• Launched LG chocolate , the first phone in the black label series.
• Developed world's first 102-inch Plasma TV .
• Co-established LG-Nortel, a telecommunications network equipment venture with Nortel Networks.
• Launched mobile phone with S-DMB reception and recording.

2006 ..

• LG Chocolate, the first model in LG's Black Label series of premium handsets, sells 7.5 million units worldwide .
• Develops the first single-scan 60" HD PDP module and 100-inch LCD TV .
• Establishes strategic partnership with UL .
• Acquires the world's first IPv6 Gold Ready logo .
• Launched LG shine, the second Handset in the Black Label Series.
• Launched steam washing machine and interactive TV refrigerator.
• Developed world's first 100-inch LCD TV.
• Launched world's first full HD ( 1080p ) 102-inch Plasma TV
• Developed world's first dual-format, High-definition disc player and drive.

2007 ..

• Launches BH100 Super Blu, the word's first dual-format, high-definition disc player and drive .
• Launches 120Hz Full HD LCD TV.
• Demonstrated the world-first MIMO 4G-Enabled technologies with 3G LTE .
• Won contract for GSMA's 3G campaign.
• Launched PRADA phone by LG with advanced touch interface.
• Shipped 15 million LG chocolate phone.
• Led US drum washing machine market for the first time.
• Won record number of international design awards, including 21 iF and 29 red dot design awards.

2008 ..

• Introduces new global brand identity: "Stylish design and smart technology, in products that fit our consumer's lives."
• Posted No.1 spot in US frontloading washers in 5 consecutive quarters.
• Unveiled the world's first Bluetooth headset combined mobile phone .
• Unveiled the world's first Blu-ray network storage .
• Developed the world's first LTE mobile modem chip
• Recorded over 100 million units of LG air conditioners in accumulated sales.
• The 50th Anniversary of LG Electronics.
• Established new LG Electronics brand identity.
• Launched LG secret, the third Handset in the Black Label Series.
• Released LCD TV in 80 nations simultaneously .
• Held international environment conference with UN.