Doosan Bobcat(241560) increased its operating profit in the second quarter of this year by more than 40% from a year earlier thanks to a one-time revenue from U.S. tariff refunds. However, excluding the refund effect, operating profit in dollar terms fell about 21% from the same period last year.
Doosan Bobcat said in a filing on the 23rd that, on a consolidation basis, second-quarter revenue was 2.4479 trillion won and operating profit was 291.7 billion won, based on preliminary figures. They rose 11.2% and 42.9%, respectively, from a year earlier. Operating profit beat the brokerage consensus (190.5 billion won) by about 53%. Net profit rose 63.9% from a year earlier to 199.5 billion won.
The main reason operating profit far exceeded market expectations was the reflection of a one-time revenue from receiving back tariffs paid in the United States. Doosan Bobcat recognized $81 million, which it expects to receive back from tariffs paid when bringing in equipment and parts to the United States, as second-quarter revenue. The actual refund is expected to come in during the second half.
Excluding this one-time effect, profitability worsened. In Doosan Bobcat's functional currency, the dollar, second-quarter operating profit was $195 million, up 34% from a year earlier, but operating profit excluding the tariff refund is estimated to have decreased 21% to about $114 million.
Although shipments of some products were postponed to the next quarter due to a network shutdown following security anomaly signs, revenue increased on the back of higher selling prices. Revenue in dollar terms was $1.63 billion, up 4% from a year earlier.
By product, revenue from compact equipment and industrial vehicles increased 4% and 2%, respectively. Portable power saw a sharp quarter-over-quarter rise in revenue, recovering to last year's level. Doosan Mottrol, which manufactures hydraulic components, posted a 40% increase in revenue as sales to domestic and overseas customers grew.
By region, North America revenue rose 3% on pricing policies and increased forklift sales. Europe, the Middle East and Africa rose 10% on recovering demand for compact equipment and favorable currency effects. Revenue in Asia, Latin America and Oceania fell 8% as weak forklift sales offset strong sales in South America, Oceania and India.
Doosan Bobcat's board of directors set the second-quarter dividend at 400 won per share that day. Under its plan to enhance corporate value, Doosan Bobcat is paying at least 1,600 won annually in quarterly dividends.