Doosan Co., Ltd. Reports Q3 Operating Profit of 110.2 Billion KRW, Down 65% Year-on-Year

Decrease in Major Affiliates' Performance

Doosan Corporation announced that its consolidated operating profit for the third quarter was 110.2 billion KRW, a decrease of 65.5% compared to the same period last year. During the same period, sales fell 14.5% to 3.8785 trillion KRW. The cumulative sales for the third quarter reached 12.9331 trillion KRW, with an operating profit of 794.8 billion KRW.

In the bidding competition for the new Dukovany nuclear power plant in the Czech Republic, "Team Korea," led by Korea Hydro & Nuclear Power and consisting of Doosan Enerbility, Daewoo Engineering & Construction, and Korea Electric Power Technology, was selected as the preferred negotiator, defeating the French Electric Utility Company (EDF). The photo was taken on the 18th at Doosan Tower, Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Doosan Bobcat, a major affiliate, experienced a decline in performance due to external environmental uncertainties and dealer inventory adjustments, as well as a base effect from last year’s strong performance.

A Doosan Corporation representative explained, "Our own business sales and operating profit recorded growth compared to the same period last year, driven by strong sales of high-margin products in the Electronics BG."

The in-house business posted sales of 342.5 billion KRW and an operating profit of 35.5 billion KRW. In particular, despite delays in the recovery of the memory semiconductor market, the Electronics BG achieved sales and operating profit growth of 22.3% and 90.4%, respectively, year-on-year, through the expansion of next-generation materials such as AI (artificial intelligence) accelerators.

The Electronics BG plans to continue its growth in the fourth quarter based on mass production of high-end materials such as AI accelerators and optical modules (electronic devices that convert electrical signals into optical signals).

Doosan Enerbility recorded sales of 3.3956 trillion KRW and an operating profit of 114.8 billion KRW. Although sales decreased compared to the previous year due to a base effect from large project orders such as the Shinhanul Units 3 and 4 nuclear power plant main equipment (approximately 3 trillion KRW) and the Kazakhstan combined cycle power plant (approximately 1.1 trillion KRW), as well as the concentration of overseas projects in the fourth quarter, it is expected to achieve its annual order target of 6.3 trillion KRW.

Doosan Bobcat posted sales of 1.7777 trillion KRW and an operating profit of 125.7 billion KRW. Sales decreased by 25% year-on-year due to increased external uncertainties and dealer inventory adjustments, while operating profit fell 58% due to fixed cost burdens from production volume adjustments.

Doosan Fuel Cell recorded third-quarter sales of 32 billion KRW and an operating loss of 2.3 billion KRW. Since the volume won in last year’s Clean Hydrogen Power Supply Obligation (CHPS) general hydrogen bidding market will be delivered in earnest from the fourth quarter, annual performance is expected to rebound significantly compared to last year, reaching the market estimate of 400 billion KRW.