Doosan Bobcat

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

Doosan Bobcat Named To Fast Company’s 2024 Most Innovative Companies List in Manufacturing

Doosan Bobcat announced on the 20th that it was selected as U.S. media Fast Company’s 'The Most Innovative Companies of 2024' in the manufacturing category.


Fast Company has been selecting companies with innovative technologies that change the world and announcing them annually since 2008. This year, various companies from 58 categories including manufacturing, health, climate, energy, and AI were recognized.


Doosan Bobcat, which developed the world's first skid-steer loader 65 years ago, continues to lead the compact equipment industry with smart and eco-friendly technologies. Since 2022, it has unveiled two types of all-electric loaders for the first time in the industry and introduced two concept unmanned machines designed without an operator’s cab. At CES 2024, the world's largest electronics and IT exhibition held in Las Vegas, Doosan Bobcat continued its innovation by exhibiting the industry’s first autonomous articulating tractor, along with an autonomous mower product.


Doosan Bobcat has been recognized for its technological prowess, winning two categories at the CES Innovation Awards in 2022 and 2024, respectively. In May last year, it was also recognized in the transportation sector of Fast Company's 'World Changing Ideas Awards.'


Fast Company also noted Doosan Bobcat's innovation in modernizing manufacturing facilities. The company has invested approximately 12 billion Korean won($9.3 million) in an automated press system at the Gwinner, North Dakota factory and introduced various facility updates to reduce manual labor and improve accuracy.


Scott Park, CEO and Vice Chairman of Doosan Bobcat, said, “At Doosan Bobcat, we innovate for people, helping them solve problems. Based on the innovative DNA that pioneered the compact equipment industry, we are still inventing and will become a game changer that reshapes the industry landscape.”

2024-03-20

Doosan Bobcat Reports Operating Profit of 1.4 Trillion Won Last Year... 'All-Time High'

On the 7th, Doosan Bobcat announced that it recorded annual sales of 9.7589 trillion won, operating profit of 1.3899 trillion won, and an operating profit margin of 14.2% last year, based on consolidated financial statements. Compared to the previous year, sales and operating profit increased by 13% and 30% respectively, achieving the highest performance once again.


Doosan Bobcat attributed the background of last year's performance to robust product demand and resolution of supply issues in the North American region. Sales in North America, which accounts for more than 70% of total sales, drove the growth with a 15% increase, while EMEA (Europe, Middle East, Africa) achieved a 7% increase and ALAO (Asia, Latin America, Oceania) recorded 2% decrease.


By product, there was steady growth throughout all product categories year-on-year with sales increase in compact equipment by 10%, material handling (former industrial vehicle) by 19%, portable power by 26% (based on dollar terms).


Based on the cash generated from the strong performance, Doosan Bobcat continued its net cash trend following the third quarter of last year, achieving a debt ratio of 74%.


In the fourth quarter of last year, sales decreased by 3% year-on-year to 2.3156 trillion won, while operating profit increased by 2% to 2.561 billion won.


For the annual performance outlook in 2024, Doosan Bobcat presented sales of 9.3441 trillion won and operating profit of 1 trillion won. As deferred demand diminishes, the company predicts the market will shift towards consumer-centric, leading to a slight decrease in sales. Profitability is also expected to decline due to the base effect from the previous year’s one-off profits and increased expenses such as in marketing, R&D, etc.


On the same day, Doosan Bobcat resolved at the board of directors meeting to pay a year-end dividend of 800 won per share, and in line with the 'improved dividend procedure' adopted last year, base date for the dividend was set for March 29th.

2024-02-07