Doosan Bobcat, compact construction equipment-making unit of South Korea’s Doosan Infracore Co., will meet this year’s business goal of achieving more than 7 percent on-year growth, mainly driven by the economic recovery in the U.S. and European countries and aggressive inroads into developing countries.

Kim Jong-sun, Doosan Bobcat chief financial official, said in his recent interview with Maeil Business Newspaper that the company’s growth momentum remains intact thanks to the revived infrastructure demand in North America and Europe as well as Chinese government’s increased spending on pork-barrel projects. He also expected that the company’s efforts to launch compact construction equipment specifically tailored to different markets would pay off, helping it solidify its global leadership.

According to financial information provider FnGuide, Doosan Bobcat’s operating profit for this year is anticipated to rise 7.5 percent on year to 445.1 billion won ($392.3 million) and sales 2.7 percent to 4.05 trillion won based on market consensus. But some market experts are doubtful, pointing to its disappointing first-quarter sales.

In response to such concerns, Kim said that the company’s weaker-than-expected earnings in the first quarter was rather an one-off setback after some North American clients decided to put off their orders to the second half of this year. The company’s growth pace would pick up later this year, he expected. Also, Kim stressed that Doosan Bobcat’s sales in Europe’s key markets, such as Germany and France, in fact have improved so far this year from a year ago on the economic recovery, and the company has secured a new growth engine after successfully launching new products in developing countries of Asia and Latin America.

Still, market analysts have doubts over Doosan Bobcat’s performance in North America where it earns nearly 68 percent of its sales amid shaky prospects about the U.S. president delivering his promises on infrastructure spending, given little progress in his campaign agenda.

Kim reassured that Doosan Bobcat would have no problem meeting this year’s target of 448.5 billion won in operating profit and 4.09 trillion won in sales because it set out the targets without considering the so-called Trump factor.

Kim anticipates new housing development market in the U.S. to expand by 11 percent or more annually over the next three years. The company’s balance sheet would be helped further if the U.S government lowers corporate tax rate from current 37 percent as promised.

By Yoon Jin-ho and Lee Yong-gun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]