Doosan Bobcat

Doosan Bobcat Expands Chennai Factory in India... Taking the Leap to Become a 'Global Manufacturing Hub'

On June 5th, Doosan Bobcat announced that it had expanded facilities in the Chennai factory to support production of a mini excavator and held an inauguration ceremony on the 4th (local time).


The inauguration ceremony brought together esteemed global executives, including Doosan Bobcat CEO and vice chairman Scott Park and Hyungwon Park, president of Doosan Bobcat Asia, Latin America, and Oceania.


After approximately nine months of construction, Doosan Bobcat completed the expansion of a mini excavator production facility spanning 11,300 square meters within the existing Chennai factory site.


Mass production of mini excavators is scheduled to start next year after installation and stabilization of the production line. Doosan Bobcat India(DBIN) aims to sell 8,900 units of equipment annually by 2028, including existing products such as the backhoe loader and skid-steer loader, the newly added mini excavators and portable power products manufactured at the Bengaluru factory. This goal represents a nearly twofold increase in sales volume compared to the previous year for DBIN.


Doosan Bobcat inaugurated the Chennai factory in 2019 and has been producing backhoe loaders. The Chennai factory is the sole global production base for Doosan Bobcat's backhoe loaders, and it has been expanding its product lineup by manufacturing the smallest skid-steer loader 'S70' since last year, significantly increasing its export volume. As a result, DBIN has shown a compound average annual growth rate of 22% in sales revenue (in Indian Rupees) over the past five years.


Scott Park stated, "India is a key region that will propel Doosan Bobcat’s future growth, and the Chennai factory will leap to become a ‘global manufacturing hub’ based on the quality that meets global standards.”

2024-06-05

Doosan Bobcat expands agreement with HD Hyundai Infracore to extend product portfolio

On May 23rd, Doosan Bobcat and HD Hyundai Infracore signed a memorandum of understanding (MOU) to expand their existing strategic agreement in support of portfolio expansion. Doosan Bobcat CEO and Vice Chairman Scott Park and HD Hyundai Infracore CEO and President Cho Young-cheul attended the signing ceremony at the DoubleTree by Hilton Seoul Pangyo Hotel.


Through the MOU, the companies will explore product portfolio growth opportunities through complementary markets. Starting from North America, Doosan Bobcat will receive select models of heavy construction equipment from HD Hyundai Infracore and sell it under the ‘Bobcat’ brand, while HD Hyundai Infracore will be provided with Doosan Bobcat’s select equipment. This partnership positions the Bobcat brand to offer an even broader range of products and solutions to empower dealers and customers to accomplish more.


This agreement is part of Doosan Bobcat’s portfolio expansion strategy. Doosan Bobcat, a renowned leader in compact equipment, has continued diversifying its business in various fields, including agricultural and landscaping equipment, material handling, and industrial air compressors. Through new product launches and acquisitions over the past five years, it has successfully introduced more types of products than it had in the previous 60 years.


“We are pleased to strengthen our partnership with HD Hyundai Infracore further,” said Scott Park, adding, “This strategic move emphasizes our commitment to diversification and expanding the Doosan Bobcat brand to more product offerings and solutions across industries and in key equipment categories.”

2024-05-23

Doosan Bobcat’s Credit Rating Upgraded to BB+ Stable by S&P Global Ratings

Doosan Bobcat announced on April 30 that its credit rating from the global rating agency S&P has been upgraded from BB Stable to BB+ Stable. Rating agencies typically adjust the credit rating outlook first and then observe the company before changing the rating. Therefore, it is unusual for the rating to be upgraded directly without altering the outlook from 'Stable' to 'Positive.'


S&P noted Doosan Bobcat's robust performance and analyzed, "Despite operational slowdown and investment increase, Doosan Bobcat will maintain solid financial metrics for the next two years." Doosan Bobcat marked its record-high performance last year with sales revenue of USD 7.5 billion, operating profit of USD 1.1 billion, and an operating profit margin of 14.2%.


Due to its strong operating performance, Doosan Bobcat has steadily reduced its net debt. The net debt, which was close to USD 870 million at the end of 2017, has gradually decreased, and it successfully transitioned to a net cash position, surpassing borrowings for the first time at the end of the third quarter of 2023. As of the end of the first quarter of this year, net debt stands at minus USD 357 million, continuing the net cast trend.


The company official stated, "Another global credit rating agency, Moody's, also upgraded Doosan Bobcat's credit rating from Ba3 Positive to Ba2 Stable earlier this year," and added, "With consecutive credit rating upgrades, Doosan Bobcat expects to save interest cost of approximately USD 9.2 million over the next five years."

2024-04-30

Doosan Bobcat achieves a sales revenue of USD 1.8 billion in the first quarter, an operating profit margin of 13.6%

Doosan Bobcat announced on April 29 that for the first quarter of 2024, it recorded sales revenue of USD 1.8 billion and an operating profit of USD 289 million, resulting in an operating profit margin of 13.6%


Despite the high base of the previous year, the company managed to deliver solid sales, which resulted in a modest 4.4% decline in revenue compared to the previous year. Operating profit decreased by 15.3% to USD 245 million. With the net debt amounting to minus USD 357 million, the company maintained a net cash trend thanks to the solid operating performance.


In terms of sales revenue by product, despite the high base effect, Compact Equipment remained near flat with a 1% decrease, while material handling decreased by 16% due to deferred purchases from high-interest rates, and portable power also reduced by 16% as pent-up demand was exhausted.


By region, sales revenue decreased compared to the previous year in all regions: North America by 2%, EMEA (Europe, Middle East, and Africa) by 14%, and ALAO (Asia, Latin America, Oceania) by 6%.


A Doosan Bobcat official stated, "After the historic peak of last year, the market is slowing down this year. But considering the positive economic indicators in the North American region, the demand for compact equipment will continue, and growth is expected in the Middle East and Latin America."

2024-04-29

Doosan Bobcat Participates in the World's Top 3 Construction Machinery Trade Show 'Intermat'

Doosan Bobcat announced on April 25th that it is participating in the construction machinery trade show 'Intermat' held in Paris, France, from the 24th to the 27th (local time). Intermat, considered one of the world's top three construction machinery exhibitions along with CONEXPO-CON/AGG in the United States and Bauma in Germany, is usually held every three years, but due to the pandemic, the show was canceled in 2021 and is being held for the first time in six years since 2018.


At this event, Doosan Bobcat unveiled the concept product 'TL25.60e', an electric telehandler for the first time. The telehandler is a versatile equipment used in various fields such as construction, agriculture, landscaping, and logistics. This concept model applies a liquid-cooled battery, enabling operation without being affected by weather, producing low noise and no emissions of pollutants while maintaining equivalent performance to diesel models.


Biofuel-compatible equipment such as skid-steer loaders and rotary telehandlers were also showcased. Doosan Bobcat's Stage V diesel equipment has been approved for hydrotreated vegetable oil (HVO) and other paraffinic fuels. The use of such biofuels can significantly reduce carbon emissions.


In addition to the electric excavators and forklifts, the autonomous and electric concept loader 'RogueX2', unveiled at the Consumer Electronics Show (CES) 2024 in the United States in January, also met with European customers. Smart concept technologies such as advanced display technology and collision warning and avoidance systems were also presented. The advanced display technology concept is a transparent OLED touch display (T-OLED) that allows operators to see the surrounding conditions from the driver's seat. The collision warning and avoidance system concept is designed to assist operators’ jobsite awareness. Products newly launched under the Bobcat brand, including forklifts, portable generators, and turf renovation equipment, were also displayed.


A Doosan Bobcat official stated, "We are thrilled to present a much wider range of products such as forklifts, compact tractors, and turf renovation equipment at the Intermat exhibition after six years, due to the rapid expansion of our product lineup into agricultural, landscaping, and logistics equipment in addition to construction equipment." The official also emphasized, "Doosan Bobcat will continue to lead the way in 'Green Innovation,' demonstrating that powerful performance and sustainability can go hand in hand."

2024-04-25