Doosan Group Chairman Park Jeong-won. (Photo: Doosan Group)

Under the stewardship of Chairman Park Jeong-won, Doosan is cruising to meeting its goal of making posting 1 trillion won in operating profit for the second straight year. Chairman Park, the first fourth-generation conglomerate chairman in Korea, has spearheaded a drive to improve fundamentals.

Riding the back of Chairman Park’s innovative efforts, Doosan Corp. Electro-Materials, and other major businesses as well subsidiaries, including Doosan Infracore and Doosan Bobcat, have showed steady growth.
Industry and financial community sources said Doosan is forecast to make it onto the list of chalking up 1 trillion won in operating profit this year for the second straight year. Doosan reentered a club of posting 1 trillion won in operating profit in 2017 for the first time in four years.

In a consolidated financial statement for the second quarter of this year, Doosan logged 4.746 trillion won in sales and 438.3 billion won in operating profit, an 8 percent increase and a 14.1 percent jump, respectively, compared to the same period last year. In the first six months of the year, Doosan posted 9.054 trillion won in sales and 789.1 billion won in operating profit, a 9 percent rise and a 22 percent surge over the same period of the previous year. Doosan has been restructured to a focus on stable growth, and it has begun to pay off, a Doosan official said.

All subsidiaries of Doosan Group made big turnarounds since March 2016 when Chairman Park took office. Doosan wrapped up financial restructuring efforts and made a embarked on a growth period on the back of good business performances.

The Industrial Vehicle Business Group posted 240.3 billion won in the second quarter, a 15 percent jump over the same period of last year, thanks to its aggressive overseas market exploration.

The Mottrol Business Group saw 2nd quarter sales jump 57 percent over the same period of last year to 160 billion won thanks to the growth of global markets, including China. The two business units saw a streak of sales growth for the fourth consecutive quarter. The Electro-Materials Business Group gained ground.

Doosan Corp.’s new growth businesses are expected to reap the rewards. The fuel cell business is predicted to turn around to a profit this year. The fuel cell business saw sales in the first half of this year grow to 840 billion won, a more than two-fold jump over the same period of last year, and full-fledged growth momentum is expected in the second half. Major subsidiaries also achieved stable business performances.

In a consolidated financial statement for the 2nd quarter, Doosan Infracore posted 2.144 trillion won in sales and 273.1 billion won in operating profit on the back of even growth in the mainstay market of China, emerging and advanced countries.

The company’s growth in China has led this year’s better business performances. In the first six months of the year, Doosan Infracore sold 11.105 excavators in China, representing a 66 percent jump over the same period of last year. The figure has already surpassed 10,851 units the company sold in 2017.