Seoul: Korea Aerospace Industries Ltd. (KAI), the nation’s only aircraft producer, reported a significant 28 percent increase in its third-quarter net profit, driven by favorable foreign-exchange gains. The company’s net profit for the quarter ending in September climbed to 67.9 billion won (approximately US$49 million), up from 52.9 billion won in the same period last year, as disclosed in a recent regulatory filing.
According to Yonhap News Agency, KAI attributed the profit surge to the strength of the won against the dollar during a part of the third quarter, which positively impacted the company’s financial outcomes. A stronger won reduces the local-currency value of an exporter’s dollar-denominated liabilities. Throughout the third quarter, the average exchange rate was 1,359.38 won per dollar, up from 1,310.95 won a year prior, as per the Bank of Korea’s data.
The spokesperson noted that the continued weakness of the won against the dollar throughout the quarter also enhanced the net results from an e
xport perspective. KAI’s operating profit saw a 9.9 percent increase, reaching 76.3 billion won, compared to 65.4 billion won in the previous year. However, sales experienced a decline of 9.9 percent, dropping to 907.2 billion won from 1 trillion won during the same timeframe last year.
The company stated that the rise in exports of trainer jets and light combat aircraft, along with the recovering demand for passenger jet components from major clients such as Boeing and Airbus, supported the quarterly profit growth.