Doosan Bobcat

Doosan Bobcat Reports Q3 2023 Sales of KRW 2.366 Trillion and Operating Profit Margin of 13%

On the 27th, Doosan Bobcat announced third-quarter 2023 sales and revenues of 2.366 trillion won, an operating profit of 297.6 billion won, and an operating profit margin of 12.6 percent.


Despite the base effect of high growth in the previous year, sales remained at a similar level with 0.5% decrease year-on-year. Operating profit decreased 6%, and operating profit margin fell 0.7%p due to increased marketing spend. (In dollar terms, sales rose by 1% year-on-year, and operating profit decreased by 5%.)


For the nine months of the year, cumulative sales reached 7.4433 trillion won and operating profit recorded 1.1338 trillion won, grew 19 percent and 38 percent year-on-year, respectively. The company surpassed last year’s annual operating profit of 1.0716 trillion won, reporting an operating profit of over 1 trillion won for the second consecutive year.


Doosan Bobcat converted its net debt to net cash for the first time, reducing the net debt from $67 million last quarter to -$96 million this quarter.


By product (hereinafter, based on dollar terms), construction and grounds maintenance equipment (Compact Equipment) retained the previous year's level with a 1% decrease in sales despite a high base effect from last year. In contrast, demand for Portable Power products increased due to rising oil prices, which led to 16% sales growth. Industrial Vehicle’s material handling products grew 5% due to continued demand for national accounts in North America.


By region, EMEA (Europe, Middle East, and Africa) sales grew 13% as demand for loaders in the Middle East increased. North America sales remained at a similar level, and ALAO (Asia, Latin America, and Oceania) sales dropped 9% year-on-year due to a strong U.S. dollar.


An official from Doosan Bobcat said, "Over the past five years, the company has doubled in its size through organic growth and acquisitions despite concerns over the peak out of the industry and uncertainties such as COVID-19," adding, "We are considering various opportunities for long-term growth based on stable cash flows."

2023-10-27

Doosan Bobcat Global Employees Committee to Community Engagement

Doosan Bobcat employees around the world have stepped up to support local communities.


Doosan Bobcat announced that around 1,000 executives and employees volunteered at business sites across 12 countries on the 12th. Depending on the time zone of the country where each site is located, the volunteer activities on this day started in Korea and continued as relays through China and India to the Middle East, Europe, Africa, and the United States.


Doosan Bobcat planned this activity focusing on the themes of its global social contribution strategy, namely "Preserve Environment" and "Support Community."


In Seongnam, Gyeonggi-do, Republic of Korea, where Doosan Bobcat's global headquarters is located, 100 executives and employees carried out a cleanup activity to remove harmful plants and protect the ecosystem near Tancheon Stream. In Incheon, where the company's forklift production plant is located, and in Yongsan, Seoul, volunteers cleaned orphanages, repainted them, replaced mosquito nets, and improved their facilities.


Doosan Bobcat CEO and Vice Chairman Scott Park visited a school for youth with mental health issues in West Fargo, North Dakota, where the company's North American regional headquarters is located. Park participated in an activity to retain and repair an eroded pond. Doosan Bobcat's skid-steer and compact track loader, compact excavator, compact tractor, and mini track loader helped with the reinforcement work to prevent future erosion by moving rocks and waterproofing agents.


Elsewhere, volunteers carried out various activities such as cleaning up the local environment in China, the Czech Republic and South Africa, planting trees in the UK, supporting a filed project for children in Germany, donating blood in France, sponsoring schools and medical facilities in India, and building playgrounds and renovating facilities in the other locations within the United States.


Park said, "Doosan Bobcat is pursuing responsible growth that empowers future generations, builds healthy ecosystems and improves communities." He also added: "Employees from all over the world will work together to mark footprints toward a better future."

2023-09-13

Doosan Bobcat's Q2 Operating Profit KRW 466.5 Billion... Achieved 17.5% operating margin

On July 26, Doosan Bobcat announced that it recorded KRW 2,672.1 billion (USD 2.035 billion) in sales and KRW 466.5 billion (USD 356 million) in operating profit in the second quarter. Sales and operating profit increased by 20.5% and 50.7% year-over-year, respectively, thanks to the increase in volume across all product lines, and the operating profit margin increased by 3.5%p from the previous year’s 14.0% to 17.5%.


The increase in operating profit was remarkable as one-off profits of about KRW 67 billion (USD 52 million) were generated due to the adjustment of the retirement pension of the US. But even excluding the amount, operating profit grew 29% year-over-year and operating profit ratio was 14.9%.


Net profit more than doubled year-over-year to KRW 308 billion won (USD 235 million) due to increased operating profit. Net debt at the end of the second quarter fell KRW 594.6 billion (USD 453 million) from the end of the previous year to KRW 87.6 billion (USD 67 million) by steadily reducing borrowing based on strong performance.


The cumulative performance for the first half of the year was KRW 5,077.2 billion (USD 3.921 billion) in sales and KRW 836.2 billion (USD 646 million) in operating profit, up 32% and 66% year-over-year, respectively.


By product, year-over-year sales (hereafter, in US dollars) continued to grow in all product lines in the second quarter, with increases across all categories including compact equipment increasing 9%, portable power up 30%, and industrial vehicles up 44%.


By region, the organization achieved even growth: 15% in North America, 15% in EMEA (Europe, Middle East, and Africa), and 14% in ALAO (Asia, Latin America, and Oceania).


On the same day, Doosan Bobcat held a board meeting and decided on a quarterly dividend of 800 won per common share. This is an increase of more than 30% compared to 600 won during the same period last year.

2023-07-26

Doosan Industrial Vehicle Invests KRW 30 Billion in Improving the Working Environment at the Incheon Headquarters

Doosan Industrial Vehicle (DIV), a material handling equipment manufacturing subsidiary of Doosan Bobcat, announced on the 18th that the company is investing 30 billion won (USD 23 million) in order to enhance its working environment and production efficiency.


On the 17th, DIV held a groundbreaking ceremony for the construction of a new office building at its headquarters in Dong-gu, Incheon, Korea and announced its investment plan at the event, which includes the establishment of a welfare center, the construction of parking facilities, improvement of the logistics flow, and enhancement of its manufacturing processes, in addition to the construction of a new office building.


DIV is a Korea's leading material handling equipment manufacturer, having started producing forklifts for the first time in the country in 1968. As the current office building of the Incheon headquarters was built back in 1986, a recent survey of employees conducted in March of this year drew many opinions regarding the aging facilities and the lack of work/rest areas in the building. As such, DIV has decided to build a new office facility to improve the working environment of its employees and to secure enough space for its mid- to long-term recruitment plan.


The new office building at the Incheon plant is scheduled for completion by the end of next year. With a total floor area of about 5,300 square meters (57,000 square feet) from the first basement floor to the fourth floor, five floors in total, the building will comprise office spaces, an exhibition space, a cafeteria, reception rooms, a rooftop rest area, and a remote office that will be used by workers visiting from other regions such as Dongdaemun and Bundang.


“The new office building will be built to the same standards as the Bundang Doosan Tower, which opened in 2021 in all respects, including energy efficiency, amenities, rest areas, and office equipment,” declared an official of the company. “We expect our work efficiency and employee welfare to improve significantly as the many departments previously dispersed across the plant will all move into the new building.”


Along with the construction of the new office building, DIV will also proceed with relocating of the equipment in the plant. The company plans to further increase production efficiency by moving some functions out and improving the logistics and manufacturing flows within the premises.


Since acquiring DIV in July 2021, Doosan Bobcat has accomplished remarkable synergies and made significant achievements across multiple fields, such as strengthening its cost competitiveness, diversifying its sales channels, increasing its production capacity, and enhancing its management efficiency by integrating its regional organizations. DIV Incheon plant’s production capacity increased by 20% in just one year, from 20,000 units in 2021 to 24,000 units in 2022, while its sales grew by 40% year-on-year to reach KRW 1.3 trillion, the highest sales figure it has ever recorded.


“It’s all thanks to the hard work of our executives and staff that DIV was able to achieve the greatest business performance in its 55-year history last year,” declared Hyungwon Park, president of Doosan Bobcat ALAO (Asia, Latin America, and Oceania) region, at the groundbreaking ceremony. "The company will continue striving to establish an environment that is conducive to the happiness and safety of its employees," Park added.

2023-07-18

Doosan Bobcat Invests Equity in a Silicon Valley Agtech Company, Spurring the Development of Its Autonomous Technology

Doosan Bobcat is accelerating the development of autonomous technology by signing a series of agreements with unmanned and automation-related software companies.


Doosan Bobcat announced on the 7th that it invested in Agtonomy, an ag-tech software company based in Silicon Valley, California, USA. Agtonomy has received investments from GV (Google Ventures), Toyota Ventures, and Mirae Asset Venture Investment, among others.


Agtonomy has the technology to remotely perform labor-intensive tasks such as weeding, mowing grass, spraying crop protectants, and transporting crops. The technology is considered a solution that can help address skilled labor shortages, while supporting lower operating costs and higher productivity.


Doosan Bobcat, which has a variety of agricultural and grounds maintenance equipment such as tractors, lawn mowers, utility vehicles, and attachments designed for farmers, ranchers, and landowners, had signed a strategic partnership with Agtonomy in February. Both parties have been developing remote, unmanned and electrified technologies that improve agricultural work efficiency and accuracy. And this equity investment is aimed at supporting the long-term partnership between the two, further accelerating technological advancements.


In addition, Doosan Bobcat is collaborating with several technology companies to advance its innovations. For instance, the company signed an equity investment agreement with Ainstein, a U.S. company specializing in radar sensors, in 2021. Another equity investment agreement with U.S.-based Greenzie followed this in 2022; Greenzie is an autonomous software company for commercial lawn mowers and outdoor power equipment. Meanwhile, Doosan Industrial Vehicle, a subsidiary of Doosan Bobcat, has been advancing its AGF (automated guided forklift) technology through a partnership with Kollmorgen, a Swedish platform provider for driverless logistics automation solutions.


According to MarketResearch.com, an American research institute, the global market for autonomous agriculture equipment was estimated at USD 10.7 billion last year and is expected to grow at a CAGR of 21% over the next five years, reaching USD 28.5 billion by 2027.


An official from Doosan Bobcat said, “Our goal is to provide smart solutions that enable people to focus on more productive and efficient work by automating simple repetitive tasks. Through collaboration with global companies, we plan to apply autonomous technology to equipment in various fields such as agriculture, landscaping, construction, and logistics, as well as electric and autonomous lawn mower products to be introduced towards the end of the year.”

2023-06-07