Doosan Infracore has revealed its preliminary third quarter financial results, which show that sales increased 4% compared to the same quarter last year, from KRW 1.856 trillion (US$1.6 billion) to KRW1.928 trillion (US$1.7 billion), thanks to strong growth in China and a recovery in both developed and emerging markets.
The results of Doosan Infracore consist of sales from Doosan Heavy Industries and Construction, of which construction is only one element – the others are energy, water, castings and forgings and a new business portfolio – the company’s engine division and Doosan Bobcat.
The segment of Doosan Heavy drove the overall growth, with sales up 23.2% compared to the same quarter last year. The engines division saw a decrease in sales of 23% and Doosan Bobcat saw sales fall by 3%.
Regarding sales of construction equipment, sales in China are up by an astonishing 55% in the third quarter of the year compared to the same period in 2019, helped by increased infrastructure investment in the country.
The Chinese excavator market was the main driver of this increase, and Doosan Infracore says it expects sales of around 275,000 units in 2020, and for that to hold relatively steady into 2021.
North America and the EU region saw encouraging growth of 16% - although is down 5.9% for the first three quarters of the year - and emerging markets and South Korea were up by 0.9%. The company said its third quarter growth in North America and Europe was ”in line with market share gains in the region”.