Doosan Bobcat Reports 200 Billion Won Operating Profit in Q1, Down 38.6% Year-on-Year

"Decline Appears Larger Due to Last Year's Base Effect"
Operating Margin at 9.5%..."Profitability Improving"

Doosan Bobcat recorded sales of 2.0982 trillion won and operating profit of 200 billion won in the first quarter of this year. These figures represent decreases of 12.4% and 38.6%, respectively, compared to the previous year. The company explained that this was due to the base effect from last year’s strong performance.

On April 28, Doosan Bobcat announced its management results, revealing its sales and operating profit for last year. The operating margin was calculated at 9.5%. Compared to the previous quarter, the fourth quarter of last year, sales fell by 2% from 2.1423 trillion won due to seasonal factors. However, operating profit increased by 11% from 180.2 billion won, driven by reduced logistics costs and price increases. Operating profit has shown improvement for two consecutive quarters, rising from the low point of 125.7 billion won in the third quarter of last year.

In terms of US dollars, which is the currency used for Doosan Bobcat’s financial statements, sales and operating profit decreased by 20% and 44%, respectively, compared to the same period last year. Due to economic uncertainty and concerns over a recession, demand slowed, resulting in a decline of about 20% (in dollar terms) for both product and regional performance. By product, compact equipment fell by 22%, industrial vehicles by 20%, and portable power by 22%. By region, North America declined by 22%, Europe·Middle East·Africa by 21%, and Asia·Latin America·Oceania by 21%.

A Doosan Bobcat representative stated, "Although uncertainty has increased due to reciprocal tariffs, we expect to benefit from having a production base in the United States. The year-on-year decline appears large due to the high base effect in the first quarter of last year. The first quarter results this year are in line with the company’s targets."

Previously, on April 24, Doosan Bobcat announced a first-quarter dividend of 400 won per share. Last year, Doosan Bobcat set a minimum annual dividend of 1,600 won and declared a shareholder return rate of 40% of consolidated net income as part of its plan to enhance corporate value. After the announcement, the company completed the cancellation of 200 billion won worth of treasury shares it had repurchased.