Doosan Bobcat (241560) Q2 2024 earnings summary

Executive summary

• Revenue declined 20% year-over-year due to a record-high base in 2Q23 and slowing demand in North America.

• EBIT and net profit both fell by 51% year-over-year, impacted by lower volumes and higher marketing expenses.

• All major business segments and regions experienced double-digit revenue declines, with North America down 22% and EMEA down 16%.

Financial highlights

• 2Q24 revenue was $1,629M, down 19.9% year-over-year and 9.6% sequentially.

• EBIT dropped to $174M, a 51.2% decrease year-over-year; adjusted EBIT fell 43%.

• Net profit was $114M, down 51.4% year-over-year; excluding a prior year one-off gain, the decline was 38%.

• EBITDA decreased 45.1% year-over-year to $217M.

• Net interest expense fell 62.7% year-over-year.

Outlook and guidance

• Demand is expected to continue slowing in North America and EMEA in 3Q24.

• Deferred purchases in material handling are likely to persist due to high interest rates.

• Economic slowdown and high interest rates are expected to keep demand weak, with some offset from growth in India and a rebound in OC sales.