Doosan Bobcat

Doosan Bobcat reports all-time high revenue and operating profit

Doosan Bobcat announced on the 8th that it recorded annual sales of KRW 8.6219 trillion (USD 6.674 billion) and operating profit of KRW 1.072 trillion (USD 829 million) based on consolidated financial statements last year. Increased by 48.2% and 80%, respectively (31% and 60% in dollar terms, respectively) from sales of KRW 5,816.2 billion (USD 5.082 billion) and operating profit of KRW 595.3 billion (USD 520 million) in 2021, the previous record high. Annual operating profit margin was 12.4%, up 2.2%p from the previous year.
Doosan Bobcat cited solid demand, steep growth of grounds maintenance equipment (GME), and full-year recognition of Doosan Industrial Vehicle which was acquired in July 2021 as the background for last year’s high performance.
In particular, the Doosan Bobcat business (excluding industrial vehicles) posted record sales last year, based on strong demand from major markets, with compact equipment and portable power grew by 20% and 24%, respectively, compared to the previous year (in dollar terms). Especially, GME grew by 51% in North America YoY and continued to grow at an average annual growth rate of 56% since 2019, when it first launched a compact tractor.
Industrial vehicle also had the best year since its foundation, reporting record revenue of 1.4 trillion won thanks to strong sales in the North American market, including increased volume of fleets to large rental companies. By region, the growth rate was 36% in North America, 13% in EMEA (Europe, Middle East, Africa), and 37% in ALAO (Asia, Latin America, Oceania).
In the fourth quarter of last year, sales increased by 35.3% to KRW 2,383.9 billion, and operating profit increased by 62.5% to KRW 250.8 billion. (Sales of USD 1,757 million, +17.4% YoY, and operating profit of 183 million, +40.2% YoY)
On this day, Doosan Bobcat presented sales of KRW 9,226.7 billion (USD 6.937 billion) and operating profit of KRW 897.6 billion (USD 675 million) as a guidance for 2023.
Meanwhile, Doosan Bobcat held a board meeting on the same day and decided to pay a final cash dividend of 750 won per common share. With the interim dividend of 600 won, the total annual dividend for the fiscal year of 2022 results in 1,350 won.

2023-02-08

Doosan Bobcat Rolls Out GME Products to the European Market

Doosan Bobcat's grounds maintenance equipment business is set to enter the European market far beyond its home turf in North America.
Doosan Bobcat announced on 2 February that nine models of its compact tractors are coming to the market in Europe. Its first compact tractors for Europe will be delivered to an Italian dealer who pre-ordered the equipment.
Doosan Bobcat entered the compact tractor market in North America in 2019 and launched its lawn mowers on the continent the following year. Despite being brand new product categories from Bobcat, the products have seen early success in the North American market thanks to Bobcat's strong brand power and product competitiveness, coupled with the growing number of hobby farmers in North America.
In line with the growing demand for GME in the U.S., Doosan Bobcat completed a U.S. $70 million expansion of its production plant in Statesville, North Carolina in October last year.
This year, Doosan Bobcat is expanding its GME efforts in the European market. Starting with compact tractors, a series of GME products including mowers, will be sequentially launched in Europe.
“Since the first compact tractor was introduced to the European market at the Bauma trade fair in Germany last October, more than 100 pre-orders have been received from Italy, the UK, Poland, Benelux, etc.,” said a Doosan Bobcat official, adding “Having posted more than U.S. $800 million in global GME sales last year, we aim to double our growth by 2027.”

2023-02-03

Doosan Bobcat Opens New US PDCs to Bolster its Aftermarket Competitiveness

Doosan Bobcat has opened additional parts distribution centers(PDCs) in key areas of North America to further strengthen its aftermarket competitiveness.
On January 27th, Doosan Bobcat announced that the company had opened a new PDC for construction equipment in Atlanta, Georgia, USA, just four months after opening its PDC in Reno, Nevada, USA, in September 2022.
Doosan Bobcat now has three PDC locations in the U.S., including Woodridge, Illinois in the Midwest, Reno in the west, and Atlanta in the southeast, increasing its total facility operation area 2.5 times from 33,000㎡ to 83,000㎡. With the addition of its regional bases, Doosan Bobcat is now able to provide improved services to its customers by securing ample inventory, extended ordering hours, shortened delivery times, and diversified delivery options.
PDCs supply both attachments and parts in the aftermarket. With more than 400 types of attachments—the largest variety in the industry—Doosan Bobcat posted sales of approximately KRW 1.6 trillion(1.3 billion dollars) in the AM/PS(aftermarket parts and service) sector last year – including sales of Bobcat, Portable Power, and Industrial Vehicle, an increase of 27% from the previous year. The aftermarket business is regarded as a stable business with steady sales and high profitability, as it is less cyclical.
Doosan Bobcat is currently supporting Bobcat equipment dealers and customers from seven PDCs located in Germany, the UAE, China, South Korea (Hwaseong, Gyeonggi-do), and three regions in North America. Last year, Doosan Bobcat North America migrated its online parts purchasing site into the company's official website to improve customer access and convenience.
“With the opening of additional parts centers in the western and southeastern United States, we are now able to ship about 90% of our orders across North America within three days,” declared a spokesperson of Doosan Bobcat. “We will continue to strengthen our aftermarket business by expanding our revenue sources, with the goal of achieving sales of 2 trillion won by 2027.”

2023-01-27

Bobcat Company Celebrates Completion of Manufacturing Facility Expansion in Statesville, N.C.

Bobcat Company, a global leader in the compact equipment industry, today celebrated the completion of its Statesville manufacturing facility expansion with a ceremonial ribbon cutting attended by company leaders, employees and community members. The $70 million investment makes the location the company’s largest manufacturing facility in North America and will add hundreds more jobs in Iredell County over the next five years.
The 600,000-square-foot expansion increased the footprint to more than 1 million square feet on a more than 150-acre campus, located at 1293 Glenway Drive, Statesville, north of Charlotte, North Carolina. This investment enables the Statesville operation to also serve as a key manufacturing hub to help meet a growing demand for Bobcat products by increasing production capabilities and efficiency.
“This is a significant day for Bobcat, the Statesville community and our customers as we grow our presence in North Carolina and expand our manufacturing capabilities in the U.S.,” said Mike Ballweber, president of Doosan Bobcat North America. “This investment will not only position us to meet growing customer demand, but it also adds significant job opportunities to benefit the community.”
Construction on the project began in July 2021 and took roughly fourteen months to complete.
Thanks to this expansion, up to 250 jobs will be added in the next five years. Since the start of this year, more than one third of these new positions have already been filled, increasing Statesville’s current team to nearly 600.
“As one of our community’s largest manufacturing companies, we are proud of the commitment Bobcat Company has made not only in its facility growth and job creation, but also in its commitment to economic impact, charitable giving, educational support and community involvement,” said City of Statesville Mayor Costi Kutteh, who attended the ribbon-cutting ceremony along with other community leaders. “Bobcat is an inspiration and catalyst to each of us as Statesville continues to grow and flourish.”
The expansion adds space for manufacturing and warehousing; research and development; an automated paint line; parts control and storage; shipping and receiving docks; open air space for product testing and quality control; additional parking; shipping and delivery entrance; and finished goods inventory storage.
The manufacturing space includes new state-of-the-art technology to improve production efficiencies and streamline operations across Bobcat's North American locations.
New factory technology and systems are consistent across the company's North American facilities improving process and design collaboration, as well as simplifying transfer of information.
“It has been exciting to see these additions and enhancements to our facility take shape, and we greatly appreciate the support of our employees, partners, officials and the community during this process,” said Doosan Bobcat Portable Power Global Vice President Lance Mathern. “We are ready for the future and look forward to the benefits this expansion brings.”
Production of the Bobcat mini track loader (MTL) will shift from the Bismarck, N.D., facility to Statesville by late 2022. The new MTL production lines are designed to produce 35 units per shift, which will mean a new Bobcat MT100 will finish production every 10.8 minutes.
Additionally, the Bobcat compact tractor line has been assembled in Statesville since its launch in 2019, and will continue to be assembled in this facility, thus growing the company’s grounds maintenance equipment production at this site. The Statesville location also produces generators, light towers and air compressors.
In addition to its operations in Statesville, Bobcat has an extensive presence throughout the U.S. The company employs nearly 5,000 people at 13 facilities in seven states. Among its other facilities, Bobcat has engineering, research and development centers in North Dakota, Minnesota, Wisconsin and Arizona; a training facility in Colorado; and manufacturing facilities in North Dakota, Minnesota, Wisconsin and North Carolina.
“Our growth is rooted in our legacy as the inventor of the compact equipment industry and fueled by our drive to continue redefining the industry through groundbreaking innovation and a focus on customer experience,” Ballweber added.

2022-10-13

Doosan Bobcat’s Sales Soared to KRW 2.2184 Trillion and Operating Profit Margin Jumped to 14% in 2Q

Doosan Bobcat achieved an operating profit margin of 14% in the second quarter with the sales of KRW 2.2184 trillion and the operating profit of KRW 309.5 billion. Both sales and operating profit recorded the highest quarterly results thanks to the acquisition of the Doosan Industrial Vehicle, product price hikes, partial easing of supply chain issues, and efficient execution of marketing expenses. Combined with the effect of an increase in the KRW/USD exchange rate, sales and operating profit jumped by 73% and 121% YoY, respectively.
※ Base exchange rates (per USD): KRW 1,121.23 in the 2Q 2021 and KRW 1,259.57 in the 2Q 2022
Cumulative performance in the first half was KRW 3.8592 trillion in sales and KRW 503.9 billion in operating profit, up 54% and 62%, respectively, from the same period last year.
In terms of the US dollar, which is Doosan Bobcat's functional currency, sales rose to $1.768 billion (up 55% YoY) and operating profit reached $247 million (up 98% YoY) during the 2Q.
Excluding Doosan Industrial Vehicle, Doosan Bobcat's own operating profit margin was 15%, the highest on a quarterly basis. Sales in North America, its major market, increased 49% YoY, driving the company’s overall sales growth.
Doosan Industrial Vehicle, which was incorporated as a subsidiary in July of last year, recorded an operating profit margin of 6.7% in the 2Q, up 4 percentage points QoQ.
An official from Doosan Bobcat said, "Despite the slowdown in economic indicators, we expect solid earnings in the second half as the accumulated pent-up demand due to supply chain constraints is substantial."
Meanwhile, Doosan Bobcat’s board of directors held the board meeting on July 28th and decided to pay an interim dividend of KRW 600 per share.

2022-07-28