[THE INVESTOR] Doosan Group, led by chairman Park Jeong-won, posted a profit in the second quarter of the year on the back of stringent restructuring measures.

The nation’s 12th largest conglomerate recorded sales of 4.25 trillion won (US$3.72 billion) and an operating profit of 306.3 billion won on a consolidated basis, according to its regulatory filing on July 18.

Net profit stood at 181.2 billion won, up 767 percent from the same period in 2015. Sales were down 1.5 percent, but operating profit rose 33.2 percent. 

“Preemptive restructuring efforts were behind the turnaround that began in the first quarter of this year,” Doosan said.

All of Doosan’s affiliates ended up recording a profit.

Leading the pack was Doosan Infracore, the country’s No.1 machinery maker.

Net profit reached 224 billion won, compared with 9.5 billion won a year earlier, the company said in a regulatory filing. Operating income more than doubled to 174 billion won from a year earlier, while sales edged down 0.2 percent on-year to reach 1.62 trillion won.

Doosan Infracore attributed the sharp improvement in its bottom line to cost-saving measures and asset sales. The firm had sold its machine tool business for over 1 trillion won to a local private equity fund. Its debt-to-equity ratio fell to 211.4 percent at the end of June, from 250.5 percent three months earlier, it said.

Doosan Heavy Industries & Construction, another key affiliate, recorded a net profit of 125.5 billion won on a consolidated basis. Operating profit stood at 262.3 billion won, up 58 percent on-year.

By Kim Ji-hyun (jemmie@heraldcorp.com)