Operating profit reached W85.0B on sales totaling W825.7B
On July 26, Doosan Infracore briefed over 150 investors, analysts and journalists at the Korea Stock Exchange on second quarter financial results. Performance disclosures included W825.7 billion in sales, W85.0 billion in operating profit, and W59.0 billion in recurring profit. Participants also received detailed explanations on the corporate vision and strategies.
Stronger exports of construction equipment and machine tools boosted 2Q06 sales by 14.1% over 2Q05
Doosan Infracore officials explained that sales figures for the second quarter were up 14.1% year-on-year to W825.7 billion on a parent basis. Sales were mainly driven by improved exports of construction equipment and machine tools, despite the strong Korean Won. Such sales growth exceeded expectations, underscoring the company's outstanding competitiveness in the global market.
Moreover, operating profit in the second quarter surged 52.9% compared with the same period a year earlier. This remarkable improvement reflects the greater sales contribution of the construction equipment and machine tool divisions, which enjoy relatively higher profit margins than other product lines do.
On the other hand, second quarter recurring profit was down 14.6% year on year. The decline reflects one-off items such as losses on equity method accounting related to Korea Aerospace Industries and the amortization of present value discount stemming from early redemption of debts.
Meanwhile, the company surpassed its first half targets, with sales exceeding W1.55 trillion and operating profit reaching W145.6 billion. Officials exuded confidence that 2006 performance goals would be met with ease.
An opportunity to disclose a wide range of useful information to investors
After the briefing, participants were invited to ask questions on a full range of issues. The covered topics included the outlook for construction equipment and machine tools divisions in the second half and measures to minimize exchange rate risk. Fielding the questions were the senior executives of Doosan Infracore, including the Chief Financial Officer and the people in charge of finance, accounting, international finance, management support and strategic planning.