Korea Aerospace Industries Sees 35.2% Drop in Q2 Net Profit Due to Delayed Revenue Recognition

SEOUL, July 29 (Yonhap) -- Korea Aerospace Industries (KAI), South Korea's sole manned aircraft manufacturer, said Wednesday its second-quarter net profit fell 35.2 percent from a year earlier due to the delayed recognition of revenue from aircraft orders.

Net profit for the three months that ended in June fell to 37 billion won (US$25.6 million) from 57.1 billion won a year earlier, the company said in a regulatory filing.

"The country's first homegrown KF-21 fighter jet is scheduled to enter service with the South Korean Air Force in the second half of the year after 10 1/2 years of development," a company spokesperson said.

Shipments of the FA-50 light attack aircraft to Malaysia are also scheduled to begin later this year, the spokesperson said, adding that revenue from such contracts is generally recognized once deliveries begin.

Looking ahead, KAI said planned aircraft deliveries are expected to drive overall sales growth in 2026.

Operating profit fell 43 percent to 48.4 billion won in the April-June period from 85.2 billion won a year earlier. Sales rose 41 percent to 1.16 trillion won from 828.3 billion won over the same period.

For the first six months of the year, net profit backtracked 9.1 percent from a year earlier to 78.3 billion won. Operating profit declined 12.4 percent to 115.6 billion won, while sales moved up 48 percent to 2.26 trillion won.