Boeing Co cutting orders for pressurized doors was worth less than NT$100 million (US$3.24 million) and would have limited effect on profits, Aerospace Industrial Development Corp (AIDC, 漢翔航空) said yesterday.
The reduced orders to AIDC, which has been manufacturing pressurized doors for Boeing 737 jets since 2003, this month were not as big as the company was expecting, AIDC senior vice president Serena Huang (黃淑媛) told an investors’ conference in Taipei.
“We were worried that Boeing would cut orders of Leap engines, which power Boeing 737 MAX aircraft, but thankfully, the orders were unchanged,” Huang said.
AIDC has been manufacturing Leap engine cases for CFM International, co-owned by General Electric Co and Safran Aircraft Engines, since 2013.
The company said the engine orders offer higher profit margins than orders for other products.
It had received a letter from Boeing saying the orders for Leap engines would be unaffected by the Seattle-based company’s plan to cut production of 737 MAX aircraft, as there has been a shortage of the engines since 2017, AIDC chairman Hu Kai-hung (胡開宏) said.
Boeing on Friday last week announced that it would cut the production schedule of its 737 aircraft line following two crashes that have seen the 737 MAX grounded worldwide.
Boeing has continued to manufacture 737s since the March 10 Ethiopian Airlines crash that killed 157 people, the second deadly crash in five months after a Lion Air crash killed 189 people in October last year.
As AIDC’s revenue and net profit for last year hit records of NT$28.18 billion and NT$2.09 billion respectively, the company is not worried that Boeing’s lower orders for doors would affect its profits for this year, Hu said.
“Although Boeing’s production cuts are temporary, we have set up a task force to control risks and weather potential headwinds,” he said.
Last year, orders from Boeing and Boeing’s suppliers accounted for 3 percent of AIDC’s revenue, the company said.
AIDC is to finish building a prototype of an advanced trainer jet in September and deliver 66 military aircraft to the government from 2023 to 2028, it said.
The military aircraft sector accounted for 56 percent of its revenue last year, AIDC general manager Ma Wan-june (馬萬鈞) said.
Additional reporting by AFP
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a record 70.2 percent share of the global foundry business in the second quarter, up from 67.6 percent the previous quarter, and continued widening its lead over second-placed Samsung Electronics Co, TrendForce Corp (集邦科技) said on Monday. TSMC posted US$30.24 billion in sales in the April-to-June period, up 18.5 percent from the previous quarter, driven by major smartphone customers entering their ramp-up cycle and robust demand for artificial intelligence chips, laptops and PCs, which boosted wafer shipments and average selling prices, TrendForce said in a report. Samsung’s sales also grew in the second quarter, up
On Tuesday, US President Donald Trump weighed in on a pressing national issue: The rebranding of a restaurant chain. Last week, Cracker Barrel, a Tennessee company whose nationwide locations lean heavily on a cozy, old-timey aesthetic — “rocking chairs on the porch, a warm fire in the hearth, peg games on the table” — announced it was updating its logo. Uncle Herschel, the man who once appeared next to the letters with a barrel, was gone. It sparked ire on the right, with Donald Trump Jr leading a charge against the rebranding: “WTF is wrong with Cracker Barrel?!” Later, Trump Sr weighed
LIMITED IMPACT: Investor confidence was likely sustained by its relatively small exposure to the Chinese market, as only less advanced chips are made in Nanjing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw its stock price close steady yesterday in a sign that the loss of the validated end user (VEU) status for its Nanjing, China, fab should have a mild impact on the world’s biggest contract chipmaker financially and technologically. Media reports about the waiver loss sent TSMC down 1.29 percent during the early trading session yesterday, but the stock soon regained strength and ended at NT$1,160, unchanged from Tuesday. Investors’ confidence in TSMC was likely built on its relatively small exposure to the Chinese market, as Chinese customers contributed about 9 percent to TSMC’s revenue last
LOOPHOLES: The move is to end a break that was aiding foreign producers without any similar benefit for US manufacturers, the US Department of Commerce said US President Donald Trump’s administration would make it harder for Samsung Electronics Co and SK Hynix Inc to ship critical equipment to their chipmaking operations in China, dealing a potential blow to the companies’ production in the world’s largest semiconductor market. The US Department of Commerce in a notice published on Friday said that it was revoking waivers for Samsung and SK Hynix to use US technologies in their Chinese operations. The companies had been operating in China under regulations that allow them to import chipmaking equipment without applying for a new license each time. The move would revise what is known
RSS