Construction machinery company Doosan Bobcat held its first Investor Day at the Korea Exchange in Yeouido, Seoul, on the 10th, revealing its major management strategies and disclosing its performance, it noted on the 11th. Scott Park, vice chair and chief executive officer (CEO) of Bobcat, said, "Through innovation and mergers and acquisitions (M&A), we will achieve an average annual growth of 11% and reach sales of $12 billion (16 trillion won) by 2030." Doosan Bobcat's sales last year were 8.55 trillion won, with an operating profit of 871.4 billion won.
Vice Chair Park noted, "Both scale and profitability have doubled since going public," and "In the past five years, during which we actively pursued M&A, we achieved high growth with an average annual revenue increase of 15% and an operating profit increase of 18% through acquisitions of companies such as those in the lawn mowing and forklift sectors." Doosan Bobcat plans to use M&A and innovation as its two pillars for growth in the mature global construction equipment market.
The second term of former U.S. President Donald Trump was also seen positively. Vice Chair Park said, "Most equipment sales, which generate 75% of our revenue, are produced within the United States," and added, "If Trump's commitment to emphasize infrastructure investment is realized as policy, it will be positive from the perspective of construction equipment demand." Regarding the establishment of a factory in Mexico, he stated, "While there are advantages such as abundant labor, it has not yet begun operation, so we are closely monitoring the situation." Doosan Bobcat broke ground last June for a small construction equipment loader production factory in the Monterrey industrial complex in Nuevo Leon, Mexico.
It also reaffirmed its commitment to implementing the value-up program announced at the end of last year. CFO Jo Deok-jae, who presented alongside, said, "The 40% shareholder return rate included in the value-up program is among the highest in the machinery industry," and noted, "We are on the verge of completing the promised 200 billion won in our share buyback, and a decision on the disposal is expected within a month."