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Daewoo Electronics eyes 5 pct operating margin in 2019

2018/03/14 10:30

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SEOUL, March 14 (Yonhap) -- South Korean home appliance maker Daewoo Electronics Inc. will seek to post an operating margin of 5 percent in 2019 after laying the foundation for the black ink this year, the company head said Wednesday.

Daewoo Electronics will also push to list its shares on domestic and overseas stock markets after 2020, chief executive Ahn Jung-gu said in a meeting with reporters.

In February, mid-sized South Korean conglomerate Dayou Group took over Dongbu Daewoo Electronics Corp. and renamed it Daewoo Electronics.

"We will try to lay the groundwork for a profit this year before achieving an operating margin of 5 percent from 2019 and beyond," Ahn said, unveiling the company's business strategy and management goals. "We also plan to seek listings at home and abroad after 2020."

   Operating margin refers to the ratio of operating profit to revenue.

Daewoo Electronics was established as a unit of the now defunct Daewoo Group in 1974. It rose with the fortunes of its parent group before going bankrupt in 2006 with the breakup of the conglomerate.

Daewoo Electronics relies on overseas markets for most of its sales. The company produces various goods including TVs, refrigerators, kitchen appliances, washing machines and air conditioners.

The company operates 14 overseas sales firms together with 15 overseas branches and representative offices. It has manufacturing plants in Mexico, China and Malaysia.

In 2014, Dayou Group acquired home appliance maker Dayou Winia Co., which is known for its Dimchae kimchi refrigerator.

At the meeting with reporters, Dayou Winia chief executive Kim Jae-hyun said the company is seeking to post an on-year sales increase of 30 percent this year and is looking for ways to boost shipments through cooperation with Daewoo Electronics.

Dayou Group, meanwhile, ruled out the possibility of merging Daewoo Electronics with Dayou Winia in the mid and long-term.

"At the moment, we have no plans to combine the two affiliates," Cho Sang-ho, vice president of the group, said. "We are benchmarking the way Hyundai Motor Co. and Kia Motors Corp. are run."

   Hyundai Motor and Kia Motors, South Korea's top two automakers, belong to Hyundai Motor Group. The two companies independently produce and sell vehicles, while sharing research and development and logistics.