Doosan Infracore announced on July 24 that its operating profit in the second quarter of this year was 154.3 billion won ($128.5 million), down 48.1 percent from the same period last year.
Sales fell 10.2 percent year-on-year to 1.975 trillion won. Net profit fell 54.8 percent to 78.1 billion won.
In the first half, its sales fell 9.1 percent year-on-year to 3.985 trillion won and operating profit dropped 38.7 percent to 335.3 billion won.
Doosan Infracore explained that it is due to the global market slump stemming from the new coronavirus infection and intensifying competition.
The company said its mid- to large-sized construction machinery business in the second quarter saw its sales fall across the world except for the Chinese market, but it did well thanks to a quick recovery in the Chinese excavator market and increased market share in advanced and emerging markets.
According to the China’s machinery association CCMA, Doosan Infracore's share of MNCs in China has been steadily expanding from 12.9 percent in 2015 to 23.0 percent in the first half of this year.
In the second quarter of this year, its sales in China reached 527.5 billion won, up 57.7 percent from the previous year. It also grew 4.7 percent in the first half of the year.
This year, the size of China's excavator market will be raised from 210,000 units forecast at the beginning of the year to reach 240,000 units, Doosan Infracore predicted.
Doosan Infracore explained that although the size of advanced markets such as North America and Europe has been reduced by more than 30%, it is pushing to expand its market share by increasing sales of mini excavators with less than 8 tons by 10%.
Despite a 27 percent decrease in the Korean and emerging markets compared to last year, its market share has increased by 2.1 percentage points. Doosan Infracore is planning to strengthen its management of risks from future accounts receivable, increase the proportion of sales of large excavators, and secure profitability.
The second-quarter engine business saw its performance decline due to slowing demand for engines for Heavy, Bobcat and generators, despite increased external sales of the G2 engine. Doosan Bobcat also saw its sales drop 19.5 percent and operating profit plummet 59.1 percent.
