Doosan sales and profits jump in second quarter

Doosan Infracore reported second quarter sales of KRW 1.1 trillion (US$ 945 million) up +78.9% on the KRW 626 billion (US$ 528 million) recorded for the corresponding quarter last year.

Earnings before interest and tax (EBIT) jumped +284.4% to KRW 139 billion (US$ 117 million), up from KRW 36.2 billion (US$ 30 million) last year. A statement attributed the increases to a strong demand in China and other emerging markets.

Sales in the construction equipment division climbed +126 % to KRW 630 billion (US$ 531 million), up from the KRW 278 billion (US$ 234 million) recorded for the second quarter last year. A statement said the increase was thanks to a greater sales contribution from profitable markets such as China and Korea.

Excavator sales in China leapt +101% in the second quarter when compared to the same period last year with 7030 units sold this quarter against the 3498 sold in Q2 last year.

As a result of the increase, Doosan has revised upwards its forecast for China, with expected excavator sales for the year of 22000 units. The company also anticipates a +320% growth in sales of wheeled loaders in China during 2010 to 3800 units, up from 904 in 2009.

In Korea demand for the company's excavators has reached what a statement said were unprecedented levels. In the second quarter of 2009 the company sold 1098 units of construction equipment in Korea, while for the same quarter this year the volume has jumped +34% to 1468 units.

Sales from emerging markets such as the Confederation of Independent States (CIS), India, Latin America, the Middle East and Oceania also climbed +238% to KRW 126 billion (US$ 106 million), up from KRW 37.3 billion (US$ 31 million) 12 months ago. In the second quarter the emerging markets represented 20% of Doosan's global sales.