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I am taking this opportunity to express my sincere gratitude to all
of you for your support and encouragement. We experienced difficult economic conditions at home and abroad last year. The U.S. economy, which we thought had bottomed out after the 9.11 terrorist attacks, continued in the doldrums due to the Enron scandal, large business groups' accounting fraud and resultant insolvency. On the other hand, some domestic businesses failed to receive overseas orders because they lost price competitiveness due to rapid advances by developing countries such as China. The domestic market also seemed brisk when the nation recovered its sovereign credit rating to pre IMF levels, successfully hosted the World Cup, and had a smooth transition of power in the presidential election. However, household debt emerged as a new risk factor, dampening private consumption and curtailing corporate investment. Despite this adverse economic environment, TAIHAN achieved solid management results last year thanks to the efforts of all TAIHAN members. In 2002, the electric wire division realized sales of 910.6 billion won, the stainless division 319.4 billion won, and other areas 22.2 billion won, for a total of 1.2522 trillion won. In the electric wire division, exports decreased by about 14% while domestic demand increased by 12%, resulting in a 4.8% drop in sales compared with the previous year. However, the stainless division grew by 8% thanks to brisk demand in the early part of last year. TAIHAN realized a net profit of 63.3 billion won through profit-oriented marketing strategy and continuous restructuring efforts. The management environment this year also forecasts difficult navigation. The North Korean nuclear standoff and the Middle East issue are increasing the uncertainties of the world economy. The nation's economy fears another possible recession due to unstable oil prices and the unclear financial market. Therefore, this year will be an important period for our company to become a top international corporation. Given that the future belongs to those thinking about the future, a decline of competitiveness must be prevented by all means. We will secure our core competitiveness through positive cost saving and the development of high-added-value products. Additionally, we will establish a foundation for long-term growth through continuous restructuring and a commitment to profit-oriented policies. TAIHAN has the proven power and intelligence to overcome adversity and I am confident that our position in the world marketplace will become stronger through dynamic leadership and a company-wide commitment to make positive changes that will benefit the shareholders, the customers, and the employees of Taihan Electric Wire Co. Ltd.
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Thank you!
