Samsung on track to become top home appliances maker

Tue Jan 8, 2013 12:26am EST
 

LAS VEGAS (Reuters) - South Korea's Samsung Electronics Co said it is on course to achieve its goal of becoming the world's top home appliances maker by 2015, with sales growing an estimated 50 percent by then.

Samsung Electronics, which makes more chips, flat-screens, handsets and TVs than any of its competitors - including the world's best-selling smartphone - is aiming to boost its home appliance segment and narrow the gap with companies including Whirlpool Corp and Electrolux AB.

"I'm confident of Samsung becoming the world's top appliances maker by 2015 with $18 billion sales, as we set up a very well structured framework for key products and moving step by step to the goal, first starting with fridges," Yoon Boo-keun, president of the division, told Reuters in an interview at the Consumer Electronics Show in Las Vegas on Monday.

Analysts estimate Samsung Electronics earned around 13 trillion won ($12 billion) last year from home appliances, part of the firm's consumer electronics arm.

Samsung Electronics would ditch unprofitable product lines and boost research into consumer tastes across different markets, Yoon said.

"It's a business that can ensure steady cash flow with little earnings fluctuation, once you have a proper system in place," Yoon said. "It's not dull at all and has great potential to become Samsung's next earnings driver."

MR TV AIMS FOR GROWTH

Yoon, who was head of Samsung's TV business until 2011, was put in charge of the thin-margin home appliance division a year ago with a mission to match the TV outfit's success.

Known as Mr. TV, he had a pivotal role in ending Japan's more than three decades of leadership in the global TV industry in 2006.   Continued...

 
The company logo is displayed at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking