Military aircraft maker Aerospace Industrial Development Corp (AIDC, 漢翔航空工業) yesterday said it expects stable operations this year on the back of commercial business with Airbus SE and Boeing Co, and military aircraft maintenance and government energy projects.
Airbus and Boeing racing to ramp up plane production this year, particularly for single-aisle aircraft, is driving growth in AIDC’s components and engine-related businesses, company vice president Chin Huai-sheng (金懷生) told an online earnings conference.
AIDC’s workshare in LEAP engine components has increased to about 50 percent, reflecting stronger order contribution, while orders for turbine center modules are also rising following capacity expansion, she said.
Photo: CNA
LEAP, “leading edge aviation propulsion,” is a high-bypass turbo fan engine widely used in Airbus and Boeing single-aisle aircraft, and made by CFM International.
Several new commercial projects are also in the final bidding stage and could further boost AIDC’s revenue this year, Chin said.
The company has also secured maintenance and repair orders for Taiwan’s Indigenous Defense Fighter jets and advanced jet trainers, with some contracts running from next year to 2029 totaling at least NT$30 billion (US$951.44 million), Chin said.
In addition, AIDC would continue to pursue military engine maintenance contracts and defense-related projects, including drones and countermeasure systems this year, she said.
Deliveries of advanced trainer jets are also expected to improve, as the company is confident in meeting its scheduled delivery targets by the third quarter of this year, she said.
AIDC has incurred penalties for delays in delivering T-BE5A “Brave Eagle” (勇鷹) advanced jet trainers to the air force since last year, mainly due to supply chain disruptions, including engine shortages from its major US supplier, the company said.
Chin also briefed the company’s progress in the technology services business, with its static synchronous compensator project in Hualien County’s Fonglin Township (鳳林), secured last year from Taiwan Power Co (台電), entering the execution stage.
The company plans to expand further into grid and energy-related businesses in line with the government’s energy transition policies, she said, adding that AIDC has held talks with more than 40 companies on microgrid development.
AIDC expects commercial business to account for 48 percent of the company’s revenue this year, followed by defense and technology service businesses, Chin said.
Last year, the company’s revenue decreased 10.97 percent year-on-year to NT$35.45 billion, while net profit fell 66.36 percent to NT$730 million, with earnings per share of NT$0.78, down from NT$2.3 a year earlier.
Gross margin fell to 7 percent, down 3 percentage points from a year earlier, company data showed.
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