Doosan Bobcat

Doosan Bobcat Enters 'Battery Pack' Business, Accelerating Vertical Integration of Core Components

Doosan Bobcat is accelerating the internalization and vertical integration of core components by securing proprietary technologies for battery packs used in compact construction equipment and forklifts.
Doosan Bobcat and LG Energy Solution announced on March 19th that they have signed a Memorandum of Understanding (MOU) for the development of 'battery pack solutions for compact construction equipment.'
Through this MOU, the two companies will collaborate for standardized lithium battery packs and solutions for compact construction equipment and supply them to key markets including North America. Specifically, LG Energy Solution will provide lithium-ion battery cells or modules, while Doosan Bobcat will add battery management systems and package them to standard battery packs optimized for compact construction equipment. The companies will also discuss expanding the battery packs and solutions from construction equipment such as loaders and excavators to agricultural and landscaping equipment like tractors.

Hyunchul (Charlie) Park, CSO and Executive Vice President of Doosan Bobcat, stated, "We are pleased to develop battery packs for compact construction equipment on the back of excellent quality and stability of LG Energy Solution's cells," explaining the significance of the MOU. He added "We will standardize battery packs for compact construction equipment and provide solutions to major markets such as North America."
“We are excited to collaborate with Doosan Bobcat, a global leader in construction equipment, to develop electrification technologies and expand our business in this vitally important sector,” said Yooseong Oh, Senior Vice President and Head of LG Energy Solution’s Mobility & IT Battery Division. “We remain deeply committed to leading the challenge of electrifying various industries.”
Doosan Bobcat has been consistently working on the internalization of battery packs, which are directly connected to the performance of electrified equipment. Since 2023, the company has been collaborating with China's global lithium-ion battery company 'CosMX.' They have developed battery packs with enhanced stability and performance, and have been incorporating these into electric forklifts for sale since last year.

Last month, Doosan Bobcat and CosMX formalized their partnership by signing a Technical Assistance Agreement (TAA) to expand the collaboration. Through this agreement, Doosan Bobcat will receive initial training from CosMX on battery pack design and manufacturing techniques applicable to various products, securing proprietary technologies.
Additionally, Doosan Bobcat established a dedicated team for the battery pack business in January and plans to set up an R&D center. The R&D center, expected to be completed in the second half of this year and located in Pyeongchon, Anyang City, Gyeonggi Province, South Korea, will conduct technical validation for battery pack manufacturing.
With this move, Doosan Bobcat accelerates vertical integration of core components, including the acquisition of the hydraulic component specialist Doosan Mottrol last year and now entering the battery pack business. CSO Park said, "By vertically integrating the battery pack business following hydraulics, we have strengthened our competitiveness in core components, preparing for electrification as well as traditional industrial equipment," and added, "We plan to develop optimal battery packs by collaborating with leading global companies and apply them to various types of compact equipment."


About Doosan Bobcat Inc.
Doosan Bobcat Inc. represents the world-renowned Bobcat® equipment brand — a leader in the engineering, innovation, manufacturing and marketing of compact construction, landscaping and grounds maintenance equipment, forklifts and materials handling equipment, generators, air compressors, light towers, light compaction equipment, attachments and components.
Doosan Bobcat is a company within Doosan Group. Doosan Group is a top-tier global enterprise proudly serving customers and communities for more than a century.
About LG Energy Solution
LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 69,600 patents. Its robust global network, which spans North America, Europe, and Asia, includes battery manufacturing facilities established through joint ventures with major automakers. Committed to building sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its value chain by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution’s ideas and innovations, visit https://news.lgensol.com/
About CosMX
COSMX is one of the worldwide major suppliers of Li-ion batteries, and has long served for world's well-known customers in the fields of PCs, laptops, tablets, smart phones, smart wearables, power tools, drones and other fields.
For more information, visit http://www.cosmx.com

2025-03-19

Doosan Bobcat Holds Investor Day… "2030 Revenue to Reach 12 billion USD through Organic Growth and M&A"

Doosan Bobcat announced that it held an Investor Day event on February 10th at the Korea Exchange in Yeouido, Seoul, targeting domestic securities analysts and institutional investors.
This is the first time Doosan Bobcat has held an Investor Day event since its listing on the Korea Exchange in 2016. The co-representative executives, CEO and CFO of Doosan Bobcat, presented the company’s key management strategies, 2024 financial performance, and 2025 outlook at the event.
CEO and Vice Chairman Scott Park, the first presenter, explained Doosan Bobcat’s growth strategy.
Park cited four core competencies that have established Doosan Bobcat as a leading manufacturer in the compact equipment sector:

Product Excellence through a diversified portfolio, while offering the most attachments in the industry
Global Sales Network based on solid partnerships
Global Manufacturing Footprint optimized for the demand of each region
Innovation Advancements that pioneered the compact equipment market and continue to accelerate it forward

Based on these competencies, Doosan Bobcat plans to drive future growth in the mature construction equipment market through M&A and innovation.
Park said, “Since our listing in 2016, both scale and profitability have doubled. Especially over the past five years—during which we actively pursued M&As—we achieved high growth with an annual average sales increase of 15% and an operating profit of 18%, through acquisitions in adjacent business areas such as mowers and forklifts.” He added, “Based on these successful experiences, we will continue to innovate and grow existing businesses while also pursuing inorganic growth through M&As to achieve an annual growth rate of 11%, driving toward our goal of 12 billion USD (16 trillion KRW) in revenue by 2030.”

Park’s presentation was followed by CFO and executive vice president Duckje Cho with last year’s annual performance and this year’s outlook.
In 2024, Doosan Bobcat recorded annual sales of 6.269 billion USD, a 16% decrease from 2023, and an operating profit of 639 million USD, a 40% decrease from 2023 results. (According to the KRW income statement, the decline was reduced to -12% and -37% respectively, due to the weaker KRW against the dollar.)
Cho said, “The compact construction equipment market is showing a gradual recovery and is expected to rebound from the second half of this year, with annual demand expected to be similar to 2024.” He provided guidance for 2025, forecasting annual sales of 6.4 billion USD and an operating profit of 600 million USD. This represents a 2% increase in sales and a 6% decrease in operating profit compared to last year. Additionally, he emphasized, “The shareholder return rate of 40% included in the value-up program announced in late 2024 marks the highest level in the Korean machinery industry.” He added that “we are nearing the completion of the promised 200 billion KRW share buyback, and a decision will be made to cancel the shares within a month.”

2025-02-11

Doosan Bobcat Reports $6.3 Billion in Revenue with 10.2% Operating Profit Margin for 2024

Doosan Bobcat announced on February 10th that last year’s annual revenue was $6.269 billion, and its operating profit was $639 million.
Due to the downturn in the construction equipment market, revenue and operating profit decreased by 16% and 40%, respectively, compared to the previous year, and the operating profit margin was calculated to be 10.2%.
Sales also declined by product and region due to depressed demand. By product, compact equipment decreased by 15%, material handling by 22%, and portable power by 16%. By region, North America declined by 17%, EMEA by 21%, and ALAO by 5%.
In the fourth quarter, revenue decreased by 13% and operating profit by 34% year-over-year due to last year's high base effect, but compared to the previous quarter, revenue increased by 17% and operating profit by 40%.
Doosan Bobcat expects product demand to continue to be deferred under high-interest rates and provided guidance for 2025 of $6.4 billion in revenue, a slight increase of 2% from the previous year, and $600 million in operating profit, a 6% decrease due to the deterioration in profitability from diversification of sales channels.
On the same day, Doosan Bobcat resolved at the board of directors meeting to pay a year-end dividend of 800 won per share, which is scheduled to be paid within one month from the annual general meeting of shareholders. The yearly total dividend per share for 2024, including a quarterly dividend, is 1600 KRW.

2025-02-10

Doosan Bobcat Announces Plans to Enhance Corporate Value with 40% Shareholder Return Rate and 2030 Revenue Target of USD 12 Billion

Doosan Bobcat has announced its plans to enhance corporate value by emphasizing shareholder returns.
On December 16th, Doosan Bobcat publicly disclosed its corporate value enhancement plan, which includes a strengthened shareholder return policy, setting a minimum annual dividend, and buyback and cancellation of treasury shares. The company had previously promised in October to announce its shareholder return policy within this year.
First, the shareholder return rate, which includes dividends and share buybacks and cancellations, has been set at 40%, surpassing the average of domestic peers and the manufacturing industry. Continuing the annual dividend per share level from 2023, the company has set a minimum KRW 1,600 dividend per share and will distribute dividends quarterly instead of semi-annually to enhance investment stability.
Accordingly, from the first quarter to the third quarter of 2025, dividends of KRW 400 per share will be paid with the record date at the end of each quarter. The year-end dividend for the following fourth quarter will be at least KRW 400 per share, with the option for additional dividends or share buybacks based on the shareholder return rate and market conditions.
Additionally, the company announced a special shareholder return initiative, through which it will conduct a KRW 200 billion share buyback and cancellation starting this month.
The company has set a revenue target of $12 billion (approximately KRW 16 trillion) by 2030, representing a compound annual growth rate of 12%. This is intended to enhance veritable corporate value through business growth in tandem with shareholder returns.
A Doosan Bobcat official declared, “To achieve profitability on par with leading global companies and implementing shareholder returns, revenue growth through M&A and technological innovation is essential.” The representative further emphasized, “We will prioritize investments for growth in our capital allocation and share the fruits of our efforts with our shareholders.”

2024-12-16

Doosan Bobcat Signs an MOU to Expand Hydrogen Forklift Supply in Gwangyang City

Doosan Bobcat, the first company to commercialize hydrogen forklifts in South Korea, is now embarking on an effort to expand the reach of hydrogen mobility.
On November 13th, Doosan Bobcat announced that it had signed a tripartite Memorandum of Understanding (MOU) with Gwangyang City and Korea Logis Pool (KLP) to collaborate on the "Gwangyang Hydrogen City Project" and expand the supply of hydrogen forklifts.
The Ministry of Land, Infrastructure and Transport selected Gwangyang City last year as a Hydrogen City. The Hydrogen City Project plan for Gwangyang encompasses a hydrogen forklift supply initiative, and through this MOU, Gwangyang City, Doosan Bobcat, and KLP will collaborate on the initiative.
Gwangyang City will support administrative permits, infrastructure construction and operations, while Doosan Bobcat will handle the supply, provide information, develop demand for hydrogen forklifts, and proceed with hydrogen charging demonstrations. KLP, the country's largest forklift rental and comprehensive logistics company, will deploy Doosan Bobcat's hydrogen forklifts at the logistics centers in the Gwangyang Port back regions and develop rental services for hydrogen forklifts.
At the signing ceremony held on the 12th, Kim Sangchul, Executive Vice President of Sales for ALAO at Doosan Bobcat Korea, said, "We are delighted to contribute to the government's carbon-neutral policy and the activation of the hydrogen economy as a partner of the Gwangyang Hydrogen City Project," adding, "We will continue to work hard to expand the base of hydrogen mobility."

In August, Doosan Bobcat delivered the first domestic hydrogen forklift to Korea Zinc's Onsan refinery, which received special case clearance for forklift hydrogen refueling stations. Since this milestone, the company has been working to gradually expand the supply of hydrogen forklifts.
Doosan Bobcat is also actively pursuing regulatory reforms regarding hydrogen forklifts. The project to 'establish and operate dedicated hydrogen refueling stations for hydrogen fuel cell forklifts,' for which the company applied for a regulatory exemption, received approval from the Ministry of Trade, Industry, and Energy last month. Consequently, Doosan Bobcat plans to conduct demonstrations using fixed and mobile hydrogen refueling stations for hydrogen forklifts, which are currently limited to use for hydrogen cars.

2024-11-13