Korea’s construction equipment firms enjoy bumper Q3 on mining and construction demand

South Korea’s construction equipment majors Doosan Bobcat, Hyundai Doosan Infracore, and Hyundai Construction Equipment enjoyed bumper third quarter on active mining for natural resources for fueling and infrastructure demand.

Doosan Bobcat posted 316.9 billion won ($222.71 million) in operating profit for July-September period, up 144 percent from a year ago, while its sales rose 54 percent to 2.37 trillion won. Hyundai Doosan Infracore’s operating profit surged 122 percent on year to 74.7 billion won, with its sales up 21 percent to 1.17 trillion won.

Hyundai Construction Equipment reported 70.3-percent jump in operating profit to 63 billion won against a year-ago period, while sales rose 17.1 percent to 874.8 billion won.

Energy-related mining led to a surge in orders for Korean equipment makers. Mining equipment can be profitable than smaller equipment. Construction activities also helped their top and bottom line.

Doosan Bobcat enjoyed 71 percent growth in grounds maintenance equipment (GME) orders in the United States. The company added production facilities in North Carolina to meet demand.

Doosan Bobcat shares rose 1.65 percent to 33,800 won in the early trading on Monday, while Hyundai Doosan Infracore shares were up 2.59 percent to 5,550 won, and Hyundai Construction Equipment shares added 4.22 percent to 42,000 won.

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