Doosan Bobcat

Doosan Bobcat, Achieves its Highest Quarterly Performance of the Last 10 Years

□ Doosan Bobcat announced on April 27 sales and revenue of $1.099 billion and operating profit of $154 million in the first quarter of 2021, which was the largest quarterly earnings in the last ten years.
□ Sales increased by 23.3% YoY due to increased demand and the economic recovery compared to the 1st quarter of last year. The operating profit increased by 111% due to increased sales, an improved product mix, reduced promotional costs, and the margin reached to the 14%. In addition, net profit increased by 268.8% YoY to $104 million.
□ Doosan Bobcat showed an even regional growth this quarter. In North America, sales of its main products (compact loaders and mini excavators) and agricultural/landscaping equipment (GME) increased due to the rise in demand stimulated by reflationary policy and low interest rates, boosting sales by 26% YoY.
□ In the EMEA region (Europe, Middle East, and Africa), despite the delayed market recovery, sales increased by 9.4% YoY due to the robust sales of mini-excavators. The market share of mini excavators in the first quarter increased by 0.7% to 9.3% compared to the end of last year, maintaining the steady growth trend recorded since 2017.
□ Sales in emerging markets (Asia/Latin America/Oceania) increased by 42.5% YoY as demand is increasing - mainly in Oceania and China.
□ Since 2019, Doosan Bobcat has focused on expanding its product line-ups by releasing new products such as compact tractors, zero-turn mowers, and small articulated loaders. Since then, the new product lines has successfully settled in the market, along with the rising demand for the new products amid pandemic.
□ “With the increasing demand for construction equipment in the U.S. market, the demand for agricultural and landscaping equipment looks likely to remain strong, so our business performance is expected to continue improving in the remaining quarters. Once the recently announced acquisition of the Doosan Forklift division is completed, its external growth should accelerate.” said a Doosan Bobcat executive.
□ In the first quarter, Doosan Bobcat posted sales revenues of KRW 1,224.8 billion (+15.1% YoY) and an operating profit of KRW 171,380 billion (+97.3% YoY).
* Exchange rate comparison 1st Q of 2020: KRW 1,193.60, 1st Q of 2021: KRW 1,114.05

2021-04-27

Doosan Bobcat Launches Forklift Business

□ Doosan Bobcat decides to enter the forklift business.
□ At a board meeting held on March 11, Doosan Bobcat decided to take over 100% of Doosan’s forklift business, for about KRW 750 billion, with plans to finalize the contract by July of this year.
□ Under the new arrangement Doosan Bobcat will be able to expand its business portfolio into logistics, a business area with great growth potential, and maximize synergy by utilizing its brand power and global network, as the leader of the global market for compact construction equipment.
□ In 2019, the forklift business division posted sales of KRW 912.7 billion and an operating profit of KRW 61.6 billion. Over the past five years, it has recorded annual average sales growth of 6.8%. It currently holds a whopping 54% share of Korea’s forklift market.
□ Doosan Bobcat is also bolstering its efforts to promote new growth engines, including the agricultural and landscaping equipment business that it has successfully run since its launch in 2020.
□ An executive of Doosan Bobcat said, “We expect synergy across our entire value chain, based on the joint use of our domestic and overseas distribution networks, collaborative R&D on full automation technology, and much more.”

2021-03-11

Doosan Bobcat Holds 'Virtual Dealer Conference 2021' in China

On January 29, Doosan Bobcat announced that Doosan Bobcat China Co., Ltd., based in Suzhou, China, had held a virtual conference on January 28 attended by more than 400 dealers of its compact construction equipment from all over China. The company held the conference to share its business results in 2020, its mid- to long-term business strategies, and major issues with dealers operating across the country, in a drive to maximize its sales potential in the market.
Doosan Bobcat proposed a series of strategies tailored for the Chinese market, such as securing competitiveness by expanding its product line-up, reinforcing its R&D capabilities and sharing specific action plans with the dealers.
China's compact construction equipment market is the second largest market in the world after that of the United States, with compact excavators accounting for an overwhelming proportion of sales. Doosan Bobcat has been concentrating on China’s 3-ton-and-smaller mini excavator market, with sales rising to 8,778 units in 2020. The market has seen an average annual growth rate of 64% since 2016, amid rapid urbanization and rising labor costs.
In 2020, Doosan Bobcat started producing two types of mini excavators, the E17Z and the E20Z, at its Suzhou plant in China, in a bid to step up its marketing efforts for the 3-ton-and-smaller mini excavator market in particular. Doosan Bobcat plans to seize a double-digit share of China’s market within two years on the back of its unmatched product competitiveness and differentiated customer service.
Last year, Doosan Bobcat launched the S70, an ultra-compact loader, in China following its launch of Earthforce, a compact loader customized for China, in 2017, as part of its efforts to expand its sales of compact loaders in the market.
An executive from Doosan Bobcat declared, “This event enabled us to share with our major dealers in China our strategies for expanding our market presence in the country from the mid- to long-term perspective. We will further increase our market share in China by making concerted efforts to strengthen our dealers’ capabilities while continually introducing new products tailored for the market.”

2021-01-29

Doosan Bobcat Invests in a US Company with Core “Unmanned Solutions”

On January 8, Doosan Bobcat announced that it had signed an equity investment agreement with Ainstein, a venture business based in Kansas, USA, to develop 'radar sensors', the key component of unmanned solutions.
Ainstein develops and manufactures radar sensors required for air mobility such as drones, and autonomous, self-driving of automobiles. The company has established a competitive edge over its main rivals as it possesses both the hardware and software development capabilities needed to continue improving the performance of its sensors.
Having already maintained a strategic cooperative relationship since 2018, Doosan Bobcat and Ainstein executed a contract to promote the joint development of radar sensor technologies required for the automation of construction equipment in April 2020. Doosan Bobcat decided to make an equity investment in Ainstein in a bid to accelerate the development of unmanned vehicle technologies based on a more stable long-term partnership between the two companies.
Unmanned technology is growing rapidly not only for automobiles but also for construction/compact equipment, whose commercialization looks imminent. Doosan Bobcat's strategy is to occupy the unmanned solution market early on with preemptive investments.
“With this equity investment, we are looking not only to accelerate the development of unmanned technologies, but also to increase sales by securing radar sensor royalties,” said an executive from Doosan Bobcat. "We will continue to play a leading role in the automation of compact construction equipment by incorporating key radar sensor technologies into our product lines as early as possible."
Doosan Bobcat has established its position as the leader of the global compact construction equipment market by aiming itself with innovative technologies such as the commercialized version of Max Control, Apple’s remote control technology based on its mobile operating system (iOS) – a notable achievement that Doosan Bobcat accomplished in 2019 for the first time in the global construction industry.

2021-01-08

Doosan Bobcat Introduces 12 New Products - at a European Virtual Product Launch

Doosan Bobcat announced on 22 October 2020 that it had held a virtual new product launching event on October 21 (local time) at its EMEA (Europe, Middle East and Africa) subsidiary based in the Czech Republic, where it introduced a total of twelve new products, the most it has ever introduced at any event.
The new products included a compact wheel loader and a light compaction* customized for the European market, in addition to an R-series small loader and an R2-series mini excavator, both significant upgrades of existing products.
*Compaction: Used to compact soils most efficiently.
The compact wheel loader, which was unveiled for the first time at the event, is a piece of European-specific equipment that can maximize work efficiency even in narrow places with its excellent loading capacity and horizontal articulation feature. Doosan Bobcat plans to boost its market presence in the European compact wheel loader market, estimated at around 20,000 units a year, by achieving an annual sales goal of more than 1,000 units within the next five years. At the product launch, the Company also unveiled its light compaction equipment crucial for asphalt road construction for the first time.
In addition, Doosan Bobcat took the opportunity to announce the European launch of its R Series compact loader, which was introduced in North America last year, attracting a great response, and the R2-Series mini excavator, an upgraded version of its R Series excavators. The European mini excavator market stood at around 90,000 units a year in 2019, accounting for more than 80% of the continent’s total compact construction equipment market. Doosan Bobcat has continuously expanded its market share in the market by strengthening its local dealer network and enhancing its marketing capabilities. It now plans to achieve a 10% market share in Europe in a year or two - largely through the launch of new products.
At the event, the Company also showcased its latest technologies - the results of its intensive innovation efforts - including 'Max Control,' a smartphone-based remote control technology, and 'Features on Demand', which is designed to enable the user to place an order for optional features in the most convenient way, for the first time in the European market.
A representative of Doosan Bobcat said, “The event was significant in the sense that it shared with visitors the strategic direction the Company intends to take to increase its market presence in the continent,” adding, “We will further strengthen our position as a global leader by concentrating our core competencies under the company's iconic slogan “Next Is Now!”, which refers to the its commitment to redefining the compact equipment market by continuously expanding its product lineup and pursuing technological innovation.”

2020-10-22