Doosan Infracore Q2 Operating Profit 154.3 Billion KRW... 48.1% Decrease YoY

[Asia Economy Reporter Ki-min Lee] Doosan Infracore announced on the 24th that its consolidated operating profit for the second quarter of this year was 154.3 billion KRW, a decrease of 48.1% compared to the same period last year. Sales for the second quarter of this year were 1.9757 trillion KRW, with operating profit down 10.2% year-on-year.

However, Doosan Infracore's second-quarter performance this year exceeded the averages compiled by financial information provider FnGuide, which forecast sales of 1.8702 trillion KRW and operating profit of 147.5 billion KRW among securities firms.

For the first half of the year, sales amounted to 3.985 trillion KRW, down 9.1% from the previous year, and operating profit was 335.3 billion KRW, a decrease of 38.7%. Doosan Infracore explained that the decline in performance was due to the global market downturn and intensified competition caused by the impact of the novel coronavirus disease (COVID-19).

In the second quarter, the heavy construction machinery business saw sales decline worldwide except in the Chinese market, but sales increased thanks to the rapid recovery of the Chinese excavator market and expanded market share in both advanced and emerging markets.

According to the China Construction Machinery Association (CCMA), among multinational corporations (MNCs) operating in China, Doosan Infracore's market share has steadily increased from 12.9% in 2015 to 23.0% in the first half of this year.

Sales in China for the second quarter reached 527.5 billion KRW, up 57.7% from the previous year. On a first-half basis, sales also grew by 4.7%. Doosan Infracore forecasts that the size of the Chinese excavator market will be revised upward from the initial forecast of 210,000 units at the beginning of the year to approximately 240,000 units.

Although the size of advanced markets such as North America and Europe shrank by more than 30%, Doosan Infracore explained that it is pushing to expand market share by increasing sales of mini excavators under 8 tons by about 10%. Despite a 27% contraction in the Korean and emerging markets compared to last year, market share increased by 2.1 percentage points. Doosan Infracore plans to strengthen accounts receivable risk management and increase the proportion of large excavator sales to secure profitability going forward.

In the second quarter, the engine business saw a decline in performance due to weakened demand for heavy engines, Bobcat engines, and generator engines, despite increased external sales of G2 engines. Doosan Bobcat also experienced a 19.5% decrease in sales and a 59.1% drop in operating profit.

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