Doosan Heavy's Q1 Loss Attributed to Setback With Doosan Bobcat

Doosan Heavy Industries Co. suffered a 371.4 billion won first-quarter net loss due to severance payments and losses from equity ties with Doosan Bobcat Co.

The loss is a shift from a net profit of 52.8 billion won a year earlier.

Doosan Bobcat is 51 percent owned by heavy construction equipment maker Doosan Infracore Co., a leading and an affiliate of Doosan Heavy.

Doosan Heavy's operating income in the first quarter sharply declined to 56.5 billion won from an operating income of 322.4 billion won the previous year.

The company posted a first-quarter sales increase of 0.2 percent on-year to reach 3.83 trillion.

To cut costs amid dwindling orders, Doosan Heavy will place on leave some employees who would receive 70 percent of their basic monthly wages.

Doosan Heavy has earlier implemented a voluntary retirement program availed of by some 650 employees and is receiving applications for a second redundancy program.

The company struggled amid the government's efforts to boost renewable energy use while weaning South Korea off coal-fired and nuclear power plants. Consequently, Doosan Heavy endured net losses of 2.68 trillion won from 2014 through 2019.