Doosan Bobcat Reports Q2 Operating Profit of 64.3 Billion KRW Hit Hard by COVID-19... Down 59.1% YoY

[Asia Economy Reporter Ki-min Lee] Doosan Bobcat announced on the 24th that its operating profit for the second quarter of this year was 64.3 billion KRW, a decrease of 59.1% compared to the same period last year.

Second quarter sales amounted to 963.8 billion KRW, down 19.1% year-on-year. Net profit fell 56.8% to 41.2 billion KRW.

In dollar terms, operating profit was 52 million USD, down 61.2%, and sales were 788 million USD, down 22.8%.

Doosan Bobcat explained that sales declined due to weak demand caused by the spread of the novel coronavirus (COVID-19). Sales in the North American region, Doosan Bobcat's major sales area, decreased by 20.5% compared to the same period last year due to major factory shutdowns and weak product demand caused by COVID-19.

Doosan Bobcat stated that performance declined as the speed of COVID-19 spread in the North American region accelerated starting in April. However, sales of agricultural and landscaping products such as compact tractors and mini track loaders rose sharply compared to last year, showing a gradual recovery in demand since May.

Doosan Bobcat forecasted that with the rebound of the North American housing market, market demand in the second half of the year will recover to last year's level.

The Europe, Middle East, and Africa markets also shrank due to the impact of COVID-19, resulting in a 27.9% decrease in sales compared to the same period last year. On the other hand, through discovering new customers and operating marketing programs in the region, sales of the key product, mini excavators, increased by 1.5 percentage points.

Sales in emerging markets such as Asia, South America, and Oceania decreased by 31.3% year-on-year due to the spread of COVID-19 in India and Brazil, despite sales growth in the China region.

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