Doosan Bobcat

Doosan Bobcat’s Sales Soared to KRW 2.2184 Trillion and Operating Profit Margin Jumped to 14% in 2Q

Doosan Bobcat achieved an operating profit margin of 14% in the second quarter with the sales of KRW 2.2184 trillion and the operating profit of KRW 309.5 billion. Both sales and operating profit recorded the highest quarterly results thanks to the acquisition of the Doosan Industrial Vehicle, product price hikes, partial easing of supply chain issues, and efficient execution of marketing expenses. Combined with the effect of an increase in the KRW/USD exchange rate, sales and operating profit jumped by 73% and 121% YoY, respectively.
※ Base exchange rates (per USD): KRW 1,121.23 in the 2Q 2021 and KRW 1,259.57 in the 2Q 2022
Cumulative performance in the first half was KRW 3.8592 trillion in sales and KRW 503.9 billion in operating profit, up 54% and 62%, respectively, from the same period last year.
In terms of the US dollar, which is Doosan Bobcat's functional currency, sales rose to $1.768 billion (up 55% YoY) and operating profit reached $247 million (up 98% YoY) during the 2Q.
Excluding Doosan Industrial Vehicle, Doosan Bobcat's own operating profit margin was 15%, the highest on a quarterly basis. Sales in North America, its major market, increased 49% YoY, driving the company’s overall sales growth.
Doosan Industrial Vehicle, which was incorporated as a subsidiary in July of last year, recorded an operating profit margin of 6.7% in the 2Q, up 4 percentage points QoQ.
An official from Doosan Bobcat said, "Despite the slowdown in economic indicators, we expect solid earnings in the second half as the accumulated pent-up demand due to supply chain constraints is substantial."
Meanwhile, Doosan Bobcat’s board of directors held the board meeting on July 28th and decided to pay an interim dividend of KRW 600 per share.

2022-07-28

Doosan Bobcat Published Sustainability Report Containing ESG Performance

On July 15, Doosan Bobcat announced that it had published the ‘2020-21 Doosan Bobcat Sustainability Report’ containing its ESG (Environmental, Social, Governance) performance.
The report, released on the Doosan Bobcat website, is the country’s first ‘moving report’ to which multimedia storytelling tools are applied. Users can read the report more easily and intuitively through the ‘Interactive PDF’ function, which enables them to move to the desired table of contents with a single click, while enjoying various dynamic features such as videos, infographics, and animations.
Based on Doosan Bobcat’s ESG vision and framework, the report focuses on Doosan Bobcat’s efforts and results in four pillars (People, Product, Environment and Community) and three essentials (Governance, Value Chain Sustainability, and Risk Management). In addition, it has also disclosed information on the company’s response to climate change and its performance in the areas of health and safety from the perspective of financial impact in line with the Sustainability Accounting Standards Board (SASB) Standards.
Doosan Bobcat continuously strives to maximize energy efficiency and reduce environmental impact. In 2021, its energy consumption and GHG (Greenhouse Gas) emissions per production unit went down by 15% and 17%, respectively, with the sales of ‘remanufactured’ products soaring by 61% during the year.
Doosan Bobcat’s such efforts to be eco-friendlier has led to the launch of the T7X, the world’s first ‘all-electric’ compact track loader, which maximizes energy efficiency and emits no harmful substances while significantly lowering noise and vibration.
“Doosan Bobcat prioritizes the environmental, social and governance expectations of our growing business.” said Scott Park, CEO of Doosan Bobcat. “We continue to approach challenges with innovative thinking and responsive problem solving, while leading our industry and customers towards sustainable change and growth.”
Meanwhile, the sustainability report will be published in Korean next month.

2022-07-15

Doosan Bobcat achieves record breaking performance in 2021 with US$5.082 billion in sales and US$520 million in operating profit

In 2021, Doosan Bobcat recorded its highest ever performance since its establishment thanks to the increase in global demand for its compact equipment, the growth of its grounds maintenance equipment (GME) product line, and its acquisition of Doosan Industrial Vehicle.
On February 9, Doosan Bobcat announced that it had posted record highs of $5.082 billion in sales and $520 million in operating profit (a 10.2% operating margin) in 2021, based on its consolidated financial statements, achieving increases of 40.1% and 55.9%, respectively, compared to the previous year.
In the fourth quarter, the company’s sales jumped by 44.5% YoY to $1.497 billion while its operating profit grew by 13% to $130 million due to sales growth and price hikes followed by the ongoing economic recovery in developed markets.
Doosan Bobcat maintained its sales growth momentum in all regions last year.
In North America, its sales increased by 27.2% compared to the previous year thanks to an increase in market demand for its core products and consistently brisk sales of its GME products. In the EMEA (Europe, Middle East, and Africa) region, the company’s sales increased by 25.7% due to the economic recovery in major countries across the region. Its sales also grew by 31% year-over-year in the ALAO (Asia, Latin America, and Oceania) region driven by stimulus packages in Latin America and Oceania, in particular.
Doosan Bobcat announced that its sales are expected to grow by 24.1% in 2022 year-on-year thanks to solid demand for its compact equipment and the inclusion of Doosan Industrial Vehicle's full-year earnings from 2022, presenting $6.305 billion in sales and $566 million in operating profit as its guidance for the current year.
Doosan Bobcat held a board meeting on the same day and decided to pay a cash dividend of 1,200 won per common share, equivalent to a yield of 2.98%, with the total dividend payment amounting to KRW 120.3 billion, thereby resuming the dividend one year after suspending the payment for the fiscal year of 2020 amid the COVID-19 circumstances.

2022-02-09

Doosan Bobcat Posts Sales of $1.341 billion in 3Q, Breaking Quarterly Sales Record Yet Again

Doosan Bobcat announced its business results (provisional) for 3Q 2021 on October 29, stating that it had recorded sales of US$1.341 billion, a year-on-year increase of 47.0% thanks to the global economic recovery and its incorporation of Doosan Industrial Vehicle.
After recording the highest quarterly sales in ten years in the 1Q of 2021, Doosan Bobcat recorded sales growth of 4.1% and 17.1% quarter-on-quarter, respectively, breaking its quarterly sales record for three quarters in a row.
Doosan Bobcat’s operating profit in the 3Q was US$ 111 million, a rise of 19.3% year-on-year. Its operating profit margin was 8.3%, down 1.9%p from the same period last year, due to the impact of rising material and logistics costs.
The company’s sales amounted to US$3.585 billion YTD, while its operating profit during the same period was US$390 million, accounting for 99% of the total annual sales and 117% of the total annual operating profit recorded in 2020.
Doosan Bobcat (excluding Doosan Industrial Vehicle) achieved stable growth across the world in the third quarter of 2021.
In North America, the company’s sales grew by 23.1% YoY thanks to the economic recovery and brisk sales of GME products (agricultural and landscaping equipment). As the economic recovery continued despite the difficulties caused by supply chain bottlenecks, sales of the company’s loaders and mini excavators increased by 30.2%, while GME sales grew by 32.8%.
In the EMEA (Europe, Middle East, Africa) region, Doosan Bobcat achieved a growth rate of 17% YoY thanks to its various sales activities on top of the base effect. Meanwhile, in the ALAO (Asia, Latin America, Oceania) region, Doosan Bobcat grew by 26.2% during the same period, driven by the increased demand in Oceania and Latin America resulting from the implementation of stimulus packages.
As for Doosan Industrial Vehicle, which was incorporated as a subsidiary of Doosan Bobcat in July 2021, it recorded sales of KRW 225.8 billion in the third quarter, with strong sales in major markets such as North America and Europe, as well as the Korean market, where it holds the largest market share in the country. Notably, the company’s share of the North American market for engine-powered forklifts, which stood at 6% in 2019, exceeded 11% as of the third quarter of this year.

2021-10-29

Doosan Bobcat Q2 Sales Surge to US$1.145 billion, setting a new 10-Year Record

In its Q2 results (provisional) released on July 27, Doosan Bobcat announced that it had recorded sales of US$1.145 billion and an operating profit of US$125 million based on its consolidated financial statements during the quarter.
Sales grew by 45.2% YoY on the back of a base effect and the economic recovery in major markets, while operating profit increased by 138.0% during the same period thanks to an improved product mix (increased sales proportion of high-margin products) and reduced marketing expenses, achieving a 10.9% operating profit margin, a double-digit margin rate for four consecutive quarters.
Most notably, Doosan Bobcat achieved sales growth of 4.1% during the second quarter over the previous quarter, breaking its 10-year quarterly sales record which was previously set in the first quarter.
In North America, its quarterly sales rose by 41.1% YoY on the back of steady demand growth and robust sales of GME (agricultural and landscaping equipment) products. In this region, the sales of loaders and mini excavators soared by 47.7% YoY amid the brisk construction market, while GME sales increased by 57.6% YoY as people continued moving from large cities to rural areas.
In the EMEA (Europe, Middle East and Africa) region, the company’s sales increased by 52.4% YoY thanks to the budding economic recovery and the base effect. As European market showing signs of recovering, positive industry outlook is expected.
Meanwhile, on July 6, Doosan Bobcat completed the acquisition of Doosan Industrial Vehicle, whose earnings will therefore be reflected in Doosan Bobcat's consolidated financial statements starting in the third quarter of 2021.

2021-07-27