Doosan Group Achieves 'Surplus Turnaround'... Early Graduation from Creditors Signals 'Positive Outlook'

Operating Profit of 958.8 Billion KRW and Net Profit of 656.7 Billion KRW Last Year
Strong Performance of Major Affiliates...Significant Decrease in Debt Ratio

[Asia Economy Reporter Lee Hye-young] Doosan Group has succeeded in turning a profit thanks to improved performance of its major affiliates. A positive signal has also been lit for early graduation from creditor management.

Doosan Corporation announced on the 11th that its consolidated operating profit last year turned positive at 958.8 billion KRW. Last year's sales increased by 15.4% compared to the previous year to 13.7282 trillion KRW, and net profit turned positive at 656.7 billion KRW.

The debt ratio also recorded 206.1%, down 82.8 percentage points from the previous year, thanks to improved performance of major affiliates. Since 500 billion KRW out of the 1.15 trillion KRW to be raised through Doosan Heavy Industries & Construction's paid-in capital increase on the 18th will be used to improve the debt situation, the debt ratio is expected to decrease further.

The possibility that the Doosan Group creditors, including KDB Industrial Bank and Export-Import Bank of Korea, will decide to end Doosan's management system within this month has also increased. If the creditors make such a decision, it will be an early graduation after 1 year and 10 months. Doosan received creditor support worth 2.4 trillion KRW in April 2020 and submitted a large-scale self-rescue plan exceeding 3 trillion KRW to the creditors. Since then, it has been working on structural improvement through repeated affiliate sales and restructuring.

Doosan's painstaking efforts have been proven by the performance of its affiliates. Doosan Bobcat recorded its best performance since its founding, and the performance of Doosan Corporation's own business and Doosan Heavy Industries & Construction showed simultaneous improvement, driving the overall results.

Doosan Corporation's own business performance, measured by provisional consolidated own business sales last year, recorded sales of 1.4529 trillion KRW and operating profit of 137.6 billion KRW, increasing by 5.8% and 1.9% respectively compared to the previous year. In particular, the Electronics BG, which deals with basic materials for electronic products such as smartphones, achieved record-high performance last year due to sales growth of high value-added products such as semiconductor and ultra-high-speed communication equipment materials.

Doosan Corporation expects to achieve sales of 1.5 trillion KRW this year through balanced growth across all business divisions.

Doosan Heavy Industries & Construction recorded sales of 11.8077 trillion KRW, up 22.5% year-on-year, thanks to strong performance of subsidiaries and exceeding progress in large domestic and overseas EPC (Engineering, Procurement, and Construction) projects. Last year's operating profit turned positive at 890.8 billion KRW compared to the same period last year, and net profit returned to profit at 645.8 billion KRW for the first time in 8 years.

Doosan Heavy Industries & Construction's total order amount increased by 33.0% year-on-year to 7.3239 trillion KRW, and the order backlog as of the end of last year was 15.5289 trillion KRW.

Doosan Bobcat achieved record-high sales of 5.8162 trillion KRW and operating profit of 595.3 billion KRW last year, driven by increased global demand for compact construction equipment and growth in the agricultural and landscaping equipment (GME) product line.

Doosan Fuel Cell recorded consolidated sales of 381.4 billion KRW and operating profit of 17.9 billion KRW last year.

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