LS Industrial Systems Co. aims to more than triple its sales and increase its profit six-fold by 2015 through sweeping structural reforms and growth in strategic areas such as smart grids and car batteries.
Korea’s largest maker of electrical components on Sunday unveiled its ambitious 2015 vision, which entails goals of reaching 4.5 trillion won ($4 billion) in sales and 700 billion won in operating profit.
The targets reflect a roughly 320 percent rise in sales and a 630 percent surge in profit from last year.
To that aim, the Anyang-based company set off on an across-the-board drive to revamp its revenue structure and fortify its competitiveness in the global landscape.
Under the plan, LSIS sorted its complex web of operations into eight task-based units: electrical equipment; transmission and distribution; automation; future growth engines and research; China business; production and technology; management; and management support.
The firm said it has introduced a research and development program in all divisions to embrace a more independent but integrated structure and boost in-house collaboration in everything from product innovation to production.
The new organization will help galvanize its presence in markets for electrical gears and electric car batteries, and shore up emerging fields such as smart grids, green car solutions and transmission technology, company officials said.
With its new plants and research facilities in China, the company said it will spur its expansion and cater to growing demand in the world’s second-largest economy.
“The reform plan is focused on raising efficiency and quality in all steps ranging from planning and development to procurement and production,” an LSIS official said.
While last year’s sales and profits did not live up to expectations, LSIS will likely enjoy upbeat growth this year, analyst Paul Hah with Woori Investment & Securities Co. said.
“Brisk investment in electricity grids at home and abroad, the government’s planned early implementation of social overhead capital and other internal factors will come together to improve its performance,” he said in a note to clients.
By Shin Hyon-hee (email@example.com