Doosan Bobcat achieves 15% profit margin with an operating profit of KRW 369.7 billion2023-04-26
- - Bobcat’s sales have increased by 47% year-over-year owing to an increase in the sales volume of all its product families.
On the 26th, Doosan Bobcat announced that it had posted sales of KRW 2 trillion and 405.1 billion, operating earnings of KRW 369.7 billion, and an operating margin of 15.4% in the first quarter, showing increases of 46.6%, 90.2%, and 3.5%p, respectively, compared to the same period last year. The company also recorded a net profit of KRW 207.5 billion, which is more than double the figure for the previous year, thanks to an increase in its operating profit. In dollar terms, the company recorded sales of USD 1 billion and 886 million, operating profit of USD 290 million, and a net profit of USD 163 million.
The company’s net debt in the first quarter stood at USD 275 million (KRW 358.5 billion), a decrease of 47% from the end of the previous year thanks to the strong growth in its operating profit.
The growth of all its product lines, especially in North America, is the main driver of this outstanding record. Sales in North America increased by 55% compared to the previous year (hereafter, in US dollars), while those in the EMEA (Europe, Middle East, and Africa) region increased by 12% despite the weak Euro. Meanwhile, sales in the ALAO (Asia, Latin America, and Oceania) region decreased by 5% due to the unfavorable exchange rate and the rise in interest rates.
All product categories within the company showed an even growth rate – compact equipment: 37%; portable power: 42%; industrial vehicles: 43%. Among compact equipment, sales of GME(Grounds Maintenance Equipment), including compact tractors and lawn mowers, maintained their growth trend in North America with a sales increase of 55%.
Even with the high increase in sales in Q1, sales of compact equipment and portable power are likely to continue increasing as the order backlog still remains at a high level. It is also expected that sales of industrial vehicles will continue rising thanks to the realization of prices and the recovery of the US manufacturing sector.