Doosan Infracore Q1 Operating Profit 181 Billion KRW... 27.6% Decrease YoY Due to COVID-19

[Asia Economy Reporter Ki-min Lee] Doosan Infracore announced that it recorded consolidated sales of 2.0093 trillion KRW and operating profit of 181 billion KRW in the first quarter of this year. Compared to the same period last year, sales decreased by 7.9% and operating profit decreased by 27.6%.

In the heavy construction equipment (Heavy) business, sales reached 826.5 billion KRW, down 17% year-on-year, and operating profit was 73.9 billion KRW, down 37% year-on-year.

Sales of construction machinery in China for the first quarter were 311.5 billion KRW, a 33% decrease from the previous year. Doosan Infracore explained that the decline in performance was inevitable due to the spread of COVID-19 in China during January and February this year.

However, since last month, sales rebounded in a V-shaped recovery to the previous year's sales level, and Doosan Infracore forecasted that the sales peak season would continue in April and May, supported by increased demand due to expanded infrastructure investment in China.

The engine business saw growth in both sales and operating profit compared to the previous year, with sales increasing by 130 billion KRW (2.9%) and operating profit by 20.2 billion KRW (7.3%), driven by expanded external sales of small engines (G2 engines).

The consolidated subsidiary Doosan Bobcat recorded first-quarter sales of 1.0528 trillion KRW, maintaining the previous year's level (-0.2%). Operating profit fell 23% year-on-year to 86.8 billion KRW due to increased costs from new product launches.

In US dollar terms, Doosan Bobcat's first-quarter sales were 892 million USD, and operating profit was 73 million USD, down 5.6% and 27.8%, respectively. Net profit also decreased by 53.8% to 28 million USD.

The KRW/USD exchange rate rose from 1,125 KRW in the first quarter of last year to 1,194 KRW in the first quarter of this year.

Sales in the North American region decreased by 5.6%, but sales in Europe, the Middle East, and Africa increased by 2.5% in euro terms due to a strong mini excavator market. Sales in emerging markets declined by 18.4% due to the impact of COVID-19.

This content was produced with the assistance of AI translation services.