Doosan Bobcat logs strong earnings on N.America price hikes

Doosan Bobcat raises product prices 20%; Korean rivals HD Hyundai Infracore, HD Hyundai Construction Equipment lift theirs 10%

The Bobcat T7X, the world’s first all-electric compact track loader (Courtesy of Doosan Bobcat)
The Bobcat T7X, the world’s first all-electric compact track loader (Courtesy of Doosan Bobcat)
Mi-Sun Kang 1
2023-07-30 17:07:38 misunny@hankyung.com
Earnings

Doosan Bobcat Inc., the construction and agricultural machine manufacturer of South Korea’s Doosan Group, enjoyed strong earnings on still-solid demand despite key products' price hikes in North America.

Doosan Bobcat said on July 26 that its operating profit jumped by 50.7% to 466.5 billion won ($365 million) in the second quarter with sales up 20.5% to 2.7 trillion won. Its operating profit margin rose by 3.5 percentage points to 17.5%.

The revenue and profit were higher than the combined sales and surpluses of its South Korean rivals -- HD Hyundai Infracore Co. and HD Hyundai Construction Equipment Co.

“Demand for small construction equipment was stronger than expected, completely alleviating our initial fears of lower operating profit,” said a Doosan Bobcat official. “Surprisingly the North American construction equipment market remained booming.”

STRONG ORDERS DESPITE 20% PRICE HIKES

Doosan Bobcat, which generates 70% of its sales from the US, ramped up prices of key products in North America by 20% from the levels two years ago as global construction equipment makers have increased prices due to rising production and logistics costs.

The company lifted prices of skid-steer loaders, compact and multipurpose construction equipment pieces often used for digging, by 19.5%, utilizing its No. 1 position in the North American market for the machines.

HD Hyundai Infracore and HD Hyundai Construction Equipment, units of South Korea’s HD Hyundai Group, ramped up product prices by about 10% on average.

Orders for Doosan Bobcat’s products stayed strong as the Bobcat brand is seen as a premium label in the US, attracting loyal customers.

Write to Mi-Sun Kang at misunny@hankyung.com
 

Jongwoo Cheon edited this article.
#Korea #USA #NorthAmerica #construction #equipment #skid loaders #Doosan #Bobcat #HDHyundai #machinery

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