(LEAD) KAI Q3 net plunges 51.3 pct despite strong sales growth

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By Kim Eun-jung

SEOUL, Nov. 3 (Yonhap) -- Korea Aerospace Industries Ltd. (KAI), South Korea's sole aircraft manufacturer, said Tuesday its third-quarter net profit more than halved from a year earlier despite strong sales and operating profit growth.

Net profit for the July-September period stood at 19 billion won (US$14.2 million), down 51.3 percent from a year earlier, the company said in a regulatory filing.

Operating profit rose 31.9 percent on-year to 79.4 billion won, while sales surged 51.6 percent to 1.06 trillion won.

"In the third quarter, both sales and operating profit posted double-digit growth from a year earlier, driven by strong exports of aircraft and the transition of development projects to mass production," the company said in a release.

Domestic sales surged 83 percent on-year to 493.7 billion won, driven by deliveries under the KF-21 fighter jet production program for the South Korean Air Force.

Deliveries of the Light Armed Helicopter (LAH) to the South Korean Army are expected to resume in the fourth quarter as engine supplies return to normal following delays earlier this year.

Aircraft export revenue jumped 78 percent on-year to 291.4 billion won, supported by FA-50 light combat aircraft projects in Malaysia, Poland and the Philippines, as well as KT-series trainer aircraft for Indonesia.

Revenue from aerostructures reached 262.8 billion won, backed by solid overseas demand.

Its order backlog stood at 27.3 trillion won at the end of September.

KAI expects sales growth to accelerate in the fourth quarter, supported by increased KF-21 production, the resumption of LAH deliveries and FA-50 deliveries to Malaysia.

ejkim@yna.co.kr
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