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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.
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