Doosan's Operating Profit Drops 77% YoY Last Year Due to COVID-19 and Restructuring Costs (Comprehensive)

[Asia Economy Reporter Jeong Hyunjin] Doosan Corporation announced on the 9th that its consolidated sales for last year amounted to 16.9693 trillion KRW, and operating profit was 275 billion KRW. These figures represent decreases of 5.9% and 77.6%, respectively, compared to the previous year.

Doosan explained that sales and operating profit declined due to market volatility caused by the spread of COVID-19 and restructuring costs of Doosan Heavy Industries & Construction. However, its own business handling basic materials for electronic products improved profitability through a high-end product lineup, resulting in increases in both sales and operating profit compared to the previous year.

Doosan Heavy Industries & Construction, a major affiliate, recorded an operating profit of 154.1 billion KRW on a consolidated basis last year, down 85.7% from the previous year. Sales were 15.1324 trillion KRW, a 3.4% decrease from one year earlier. Operating profit declined due to one-time costs such as voluntary retirement and operating losses at overseas subsidiaries.

Doosan Infracore, which is being sold to Hyundai Heavy Industries Group, posted consolidated sales of 7.9341 trillion KRW and operating profit of 658.6 billion KRW last year. Doosan stated, "Although affected by the global market downturn due to COVID-19, there was a clear rebound in the second half."

Doosan Bobcat recorded sales and operating profit of 4.2821 trillion KRW and 393.9 billion KRW, respectively, last year. Despite the unstable market environment caused by COVID-19, it is evaluated to have performed well within the group due to the recovery of the global market.

Doosan Fuel Cell, which is not reflected in Doosan Corporation’s consolidated financial statements, recorded sales and operating profit of 461.8 billion KRW and 26 billion KRW, respectively, last year. While sales decreased by 7% compared to the previous year, operating profit increased by 51% due to improved profitability of fuel cell equipment and services.

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