Korea Aerospace Industries (KAI) presented a record-high sales target of 5.7306 trillion won for this year. The company plans to sharply expand domestic and overseas sales volumes, led by the next-generation fighter KF-21 and the light armed helicopter (LAH).
KAI said on Feb. 5 that last year's sales under consolidation financial statements rose 1.7% on-year to 3.6964 trillion won. Operating profit increased 11.8% to 269.2 billion won, and net profit rose 9.6% to 187.3 billion won.
Annual orders last year came to 6.3946 trillion won, up 30.4% from the previous year. A KAI official said it was thanks to a series of contracts for large domestic and overseas projects, including the first mass production of the KF-21, the second mass production of the medevac helicopter, the expansion of Korea Forest Service helicopters, and the export of the FA-50PH to the Philippines.
As a result, the order backlog at the end of last year stood at 27.3437 trillion won, up more than 10% from a year earlier (24.6994 trillion won).
KAI presented this year's guidance (targets) for sales and orders at 5.7306 trillion won and 10.4383 trillion won, respectively. That would require increases of 58.1% and 63% from last year. If achieved, sales would exceed the 5 trillion won level for the first time since the company's founding.
KAI projected that as the KF-21 completes 10 years and 6 months of system development and shifts to mass production, it will drive sales along with LAH mass production. A KAI official said, "We expect expanded export performance for airframe structures driven by stabilization of production for the Poland FA-50PL and Malaysia FA-50M versions and the recovery in the commercial aircraft market."
For orders, the company will pursue the first export of the KF-21 while expanding additional exports of the FA-50 and the Surion and follow-on support projects. In domestic business as well, it will push for the third mass production of the LAH and the expansion of the government-use helicopter market, with a strategy to sharply increase volumes at home and abroad.
KAI CEO Cha Jae-byeong said, "This year, we will wrap up development of the KF-21 and successfully achieve mass production and the first export, focusing the company's capabilities on creating sustainable future value for Korea's aerospace industry."
On the same day, KAI's board of directors decided to issue 500 billion won in convertible bonds (CB). The secured funds will be invested in mass production of the KF-21 and LAH, which are mid- to long-term growth bases, and in responding to increased overseas export volumes for various platforms including the KF-21, FA-50, and the Surion.