By Kim Yoo-chul
Staff Reporter
Samsung Electronics is aiming for over 9 trillion won ($8 billion) in sales in the home appliance business this year, up 26 percent from 2008.
The company is also looking for a chance to strike an acquisition deal, though specific targets haven't been selected yet, a senior executive at the unit said.
"We forecast the home appliance division will grow by more than 26 percent in sales this year from a year ago," Hong Chang-wan, executive vice president of Samsung's digital appliance business, said in a press conference held in Seoul, Thursday.
Hong was attending on the sidelines of an event to unveil Samsung's new refrigerator.
Hong said the company earned 7 trillion won in sales last year, while its operating profit for the year was some 300 billion won.
"There are concerns about external uncertainties such as the price of oil and raw materials, in addition to the foreign exchange fluctuations. Although these factors are weighing on the unit, Samsung will achieve its target by strengthening internal capabilities," he said. The company aims to make 400 billion won in operating profit in 2010.
The executive said that Samsung will become the world's second-biggest manufacturer of refrigerators this year. It hopes to be the sector leader in washing machines in 2013.
In line with the corporate strategy for more resources for "hopeful businesses," Samsung plans to take vigorous steps for acquisition deals.
Samsung is the leader in computer memory chips, liquid crystal display (LCD) panels and flat-screen TVs, while it trails Nokia in the global handset industry.
But it has relatively weak presences in home appliances compared with its rivals.
"We are positive that there will be other acquisition chances in the near future. There are two ways to boost businesses ― M&A and building manufacturing lines in target regions," Hong said.
Last week, the shareholders of Polish home appliance maker Amica Wronki approved the sale of its refrigerator and washing machine factories to Samsung Electronics.
Amica will sell Samsung raw materials, spare parts and existing stocks necessary for manufacturing and supplying fridges and washing machines in the two factories at a price equal to their book value, which will be set before the conclusion of the final agreement.
In December last year, Samsung acquired the two manufacturing facilities from Amica for $76 million.
When asked about ongoing measures to improve the safety of refrigerators after last year's massive recall campaigns, Hong said the company has been applying advanced technologies since then to avoid similar problems in the future.
Samsung ordered the recall of for 210,000 ZIPEL refrigerators manufactured between March 2005 and June of last year after a model produced in 2006 exploded on Oct. 10 in an apartment here.
Hong, who has helped Samsung become the world's top TV maker, was appointed as the chief of the home appliance division late last year.