SEOUL, Feb. 5 (Korea Bizwire) — Doosan Infracore Co., South Korea’s top construction equipment maker, is forecast to have racked up record earnings last year, aided by increased sales of excavators in China and emerging markets, industry sources said Tuesday.
According to industry data compiled by market researcher FnGuide, the company is forecast to have attained an operating income of 930 billion won (US$836 million) on sales of 8.25 trillion won. This compares with an operating loss of 95 billion won in 2015.
The stellar performance came on the back of robust sales in China and emerging markets.
According to the findings, Doosan Infracore sold 15,630 excavators in China last year, up 44 percent from a year earlier.
Its market share in China rose to 8.5 percent last year from 6.7 percent the previous year, and its sales in the world’s second-largest economy jumped more than 50 percent to reach 1.4 trillion won.
“Increased spending on infrastructure projects may continue in China, and we are aiming to raise revenue from China by 5 percent,” a Doosan Infracore official said.
Last year, 184,320 excavators were sold in China, surpassing the previous high of 176,053 units in 2017.
China’s excavator market has been growing sharply thanks to the country’s ongoing railroad, highway and airport projects in lower-tier cities, as well as continued urbanization.
In particular, China’s massive “One Belt, One Road” infrastructure drive targeted at increasing its economic clout in Asia is stimulating demand for excavators.
The country accounts for roughly a third of the world’s construction equipment market.