Doosan Bobcat

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

Doosan Bobcat achieves 15% profit margin with an operating profit of KRW 369.7 billion

On the 26th, Doosan Bobcat announced that it had posted sales of KRW 2 trillion and 405.1 billion, operating earnings of KRW 369.7 billion, and an operating margin of 15.4% in the first quarter, showing increases of 46.6%, 90.2%, and 3.5%p, respectively, compared to the same period last year. The company also recorded a net profit of KRW 207.5 billion, which is more than double the figure for the previous year, thanks to an increase in its operating profit. In dollar terms, the company recorded sales of USD 1 billion and 886 million, operating profit of USD 290 million, and a net profit of USD 163 million.


The company’s net debt in the first quarter stood at USD 275 million (KRW 358.5 billion), a decrease of 47% from the end of the previous year thanks to the strong growth in its operating profit.


The growth of all its product lines, especially in North America, is the main driver of this outstanding record. Sales in North America increased by 55% compared to the previous year (hereafter, in US dollars), while those in the EMEA (Europe, Middle East, and Africa) region increased by 12% despite the weak Euro. Meanwhile, sales in the ALAO (Asia, Latin America, and Oceania) region decreased by 5% due to the unfavorable exchange rate and the rise in interest rates.


All product categories within the company showed an even growth rate – compact equipment: 37%; portable power: 42%; industrial vehicles: 43%. Among compact equipment, sales of GME(Grounds Maintenance Equipment), including compact tractors and lawn mowers, maintained their growth trend in North America with a sales increase of 55%.


Even with the high increase in sales in Q1, sales of compact equipment and portable power are likely to continue increasing as the order backlog still remains at a high level. It is also expected that sales of industrial vehicles will continue rising thanks to the realization of prices and the recovery of the US manufacturing sector.

2023-04-26

Doosan Bobcat Announces Its Global Brand Transition Strategy

Doosan Bobcat announced on March 24 it will transition its brand strategy by reorganizing the company’s brand portfolio by region, with emphasis on the North American and European markets.


This transition strategy will rebrand Doosan Industrial Vehicle’s material handling equipment, including forklifts; and Doosan Portable Power’s products, such as portable generators and light towers. Doosan Bobcat plans to apply the Bobcat brand to these products in regions where the Bobcat brand is well recognized.


Doosan Bobcat has successfully applied its Bobcat brand to new product lines in recent years, which has contributed to the company’s overall business growth.


Even with these transitions in select regions, the Doosan brand will maintain its presence in other regions where it has stronger brand recognition, such as the domestic market. For example, the Doosan brand will be retained for Doosan Industrial Vehicle’s material handling and forklift equipment in China, India and Southeast Asia.


"Re-establishing our brand strategy will enhance our brand power and increase efficiencies throughout our global operations. Doosan Bobcat will strengthen its competitiveness by carrying out sales strategies tailored to each region where the Doosan and Bobcat brands each have strengths," said an official of Doosan Bobcat.


Doosan Bobcat unveils its new Bobcat-branded portable power and material handling products at key trade shows in March and April.


The rebranded portable power products were shown at CONEXPO-CON/AGG in Las Vegas, Nevada, U.S. The rebranded material handling products were shown at ProMat 2023 in Chicago, Illinois, U.S., and will be shown at LogiMAT in Germany in April. These rebranded machines will be available at a later date, with more information forthcoming.


Another booth highlight was the company’s newest hydrogen fuel cell-powered forklift concept. The hydrogen fuel cell forklift is under development with Plug (formerly Plug Power). As fuel cell forklifts have already been commercialized, especially in large logistics warehouses, many attendees showed their interest in the equipment.

2023-03-24