Doosan Bobcat

Doosan Bobcat Announces Plans to Enhance Corporate Value with 40% Shareholder Return Rate and 2030 Revenue Target of USD 12 Billion

Doosan Bobcat has announced its plans to enhance corporate value by emphasizing shareholder returns.
On December 16th, Doosan Bobcat publicly disclosed its corporate value enhancement plan, which includes a strengthened shareholder return policy, setting a minimum annual dividend, and buyback and cancellation of treasury shares. The company had previously promised in October to announce its shareholder return policy within this year.
First, the shareholder return rate, which includes dividends and share buybacks and cancellations, has been set at 40%, surpassing the average of domestic peers and the manufacturing industry. Continuing the annual dividend per share level from 2023, the company has set a minimum KRW 1,600 dividend per share and will distribute dividends quarterly instead of semi-annually to enhance investment stability.
Accordingly, from the first quarter to the third quarter of 2025, dividends of KRW 400 per share will be paid with the record date at the end of each quarter. The year-end dividend for the following fourth quarter will be at least KRW 400 per share, with the option for additional dividends or share buybacks based on the shareholder return rate and market conditions.
Additionally, the company announced a special shareholder return initiative, through which it will conduct a KRW 200 billion share buyback and cancellation starting this month.
The company has set a revenue target of $12 billion (approximately KRW 16 trillion) by 2030, representing a compound annual growth rate of 12%. This is intended to enhance veritable corporate value through business growth in tandem with shareholder returns.
A Doosan Bobcat official declared, “To achieve profitability on par with leading global companies and implementing shareholder returns, revenue growth through M&A and technological innovation is essential.” The representative further emphasized, “We will prioritize investments for growth in our capital allocation and share the fruits of our efforts with our shareholders.”

2024-12-16

Doosan Bobcat Signs an MOU to Expand Hydrogen Forklift Supply in Gwangyang City

Doosan Bobcat, the first company to commercialize hydrogen forklifts in South Korea, is now embarking on an effort to expand the reach of hydrogen mobility.
On November 13th, Doosan Bobcat announced that it had signed a tripartite Memorandum of Understanding (MOU) with Gwangyang City and Korea Logis Pool (KLP) to collaborate on the "Gwangyang Hydrogen City Project" and expand the supply of hydrogen forklifts.
The Ministry of Land, Infrastructure and Transport selected Gwangyang City last year as a Hydrogen City. The Hydrogen City Project plan for Gwangyang encompasses a hydrogen forklift supply initiative, and through this MOU, Gwangyang City, Doosan Bobcat, and KLP will collaborate on the initiative.
Gwangyang City will support administrative permits, infrastructure construction and operations, while Doosan Bobcat will handle the supply, provide information, develop demand for hydrogen forklifts, and proceed with hydrogen charging demonstrations. KLP, the country's largest forklift rental and comprehensive logistics company, will deploy Doosan Bobcat's hydrogen forklifts at the logistics centers in the Gwangyang Port back regions and develop rental services for hydrogen forklifts.
At the signing ceremony held on the 12th, Kim Sangchul, Executive Vice President of Sales for ALAO at Doosan Bobcat Korea, said, "We are delighted to contribute to the government's carbon-neutral policy and the activation of the hydrogen economy as a partner of the Gwangyang Hydrogen City Project," adding, "We will continue to work hard to expand the base of hydrogen mobility."

In August, Doosan Bobcat delivered the first domestic hydrogen forklift to Korea Zinc's Onsan refinery, which received special case clearance for forklift hydrogen refueling stations. Since this milestone, the company has been working to gradually expand the supply of hydrogen forklifts.
Doosan Bobcat is also actively pursuing regulatory reforms regarding hydrogen forklifts. The project to 'establish and operate dedicated hydrogen refueling stations for hydrogen fuel cell forklifts,' for which the company applied for a regulatory exemption, received approval from the Ministry of Trade, Industry, and Energy last month. Consequently, Doosan Bobcat plans to conduct demonstrations using fixed and mobile hydrogen refueling stations for hydrogen forklifts, which are currently limited to use for hydrogen cars.

2024-11-13

Doosan Bobcat Reports Q3 Earnings… Announces to Participate in “Corporate Value-up” Program

Doosan Bobcat announced on October 28th, through a public disclosure, that its third-quarter revenue was USD 1.306 billion, with an operating profit of USD 92 million.
Revenue decreased by 28% YoY amid external uncertainties and dealer inventory adjustment. Operating profit dropped by 59% due to the burden of fixed costs from adjusted production volumes.
Regarding sales by product, Compact Equipment decreased by 30%, Material Handling by 22%, and Portable Power by 17%. Regionally, sales fell by 29% in North America, 28% in EMEA (Europe, Middle East, Africa), and 16% in ALAO (Asia, Latin America, Oceania).
On the same day, Doosan Bobcat also disclosed that it will announce the “Corporate Value-Up Plan.” The company plans to demonstrate its mid-to-long-term shareholder return policy further within the year.

2024-10-28

Doosan Bobcat to Create Synergy through Vertical Integration with Doosan Mottrol

Doosan Bobcat announced that its vertically integrated subsidiary "Mottrol," which specializes in hydraulic components, is expected to relaunch as "Doosan Mottrol."

Doosan Bobcat stated on October 15th that its executives, including CEO and vice chairman Scott Park, visited Mottrol's headquarters in Changwon, Gyeongsangnam-do, South Korea. This marked Doosan Bobcat management's first official visit since it completed the acquisition process on the 4th.
The executives toured the production plant in Changwon. Scott Park announced the new beginning at a town hall meeting attended by some 200 blue- and white-collar employees by declaring Mottrol's name change to "Doosan Mottrol."

At the town hall, Park stated, "I am truly delighted and proud to welcome the employees of Doosan Mottrol to the Doosan Bobcat family, whose world-class quality has been well proven through many years of partnership. We aim to double Doosan Mottrol's sales in the next five years by achieving 'win-win' results and creating synergy."
Doosan Bobcat acquired Doosan Mottrol to assure a stable supply of core components and enhance product competitiveness through vertical integration. Doosan Mottrol expects to grow from product and regional diversification as it seeks to expand its target market from large construction equipment to medium and small construction, agriculture, and logistics equipment.
Youngmin Kwon, President of Doosan Mottrol, remarked, "We are happy to take the first step towards becoming a global leading company alongside Doosan Bobcat. We will strive to improve quality standards further and accelerate the development of new products."
Doosan Mottrol will continue independent management as a separate entity while seeking synergies for external expansion as a subsidiary of Doosan Bobcat, such as securing growth momentum as a global player.

2024-10-15

Doosan Bobcat announces second-quarter operating profit of USD 174 million, with 10.7% operating margin

Doosan Bobcat announced second-quarter 2024 earnings on July 25, reporting revenues of USD 1.629 billion and profit of USD 174 million, and an operating margin of 10.7%.
Due to the high base effect from last year's record-high performance and a slowing demand, revenues and operating profit decreased by 19.9% and 51.2%, respectively, compared to the second-quarter 2023. Net profit also fell by 51.4% to USD 114 million. Excluding the impact of one-off gains from the previous year, operating profit and net profit would reflect decreases of 43% and 38%, respectively.
Net debt stands at minus USD 187 million, maintaining a strong cash position. Despite dividend payments, the net cash has increased by USD 68 million compared to the end of 2023.
Sales revenue declined across all products and regions due to base effects, weakened market demand, and high interest rates. Product-wise, Compact Equipment sales dropped by 18%, Material Handling by 28%, and Portable Power by 16%. Regionally, sales decreased by 22% in North America, 16% in EMEA (Europe, the Middle East, and Africa), and 10% in ALAO (Asia, Latin America, and Oceania).
Doosan Bobcat announced a quarterly dividend of KRW 800 on the same day, with the dividend record date set for June 30.

2024-07-25