Japan’s Shinmaywa, a key player in the aircraft industry, witnessed a notable improvement in its third-quarter operating profit, driven by heightened production volumes for Boeing aircraft and defense ministry contracts.
According to the company’s financial presentation, the aircraft business unit experienced a 42% year-on-year surge in operating profits, reaching ¥1.7 billion ($11.4 million) for the three months ending on December 31. Net sales for the unit also demonstrated robust growth, climbing by 35.5% to ¥22.5 billion, with a simultaneous 8% increase in orders received, totaling ¥15 billion. However, outstanding orders experienced a slight dip, decreasing by 9.6% to ¥25.6 billion.
The depreciation of the Japanese Yen throughout the year further contributed to the unit’s positive financial performance.
Shinmaywa’s aircraft business, a significant supplier to Boeing and Bombardier, marked a notable uptick in the shipment of shipsets related to the 777/777X program during the third quarter. The figures rose to 29 shipsets, compared to 19 from the previous year. Additionally, shipsets for the Boeing 787 also increased to 27, showcasing a positive trend.
In contrast, shipsets for the Global 7500 business jets witnessed a decrease, falling to 25 units from 33 a year earlier. The company produces a range of components for these aircraft types, including the 777’s wing-to-body fairings, the 787’s main wing spar, and the Global 7500’s flaps, spoilers, and slats.
On the defense front, Shinmaywa observed an uptick in production work related to the US-2 amphibian, a product manufactured for the Japan Maritime Self Defense Force.
During the quarter under review, Shinmaywa’s aircraft business contributed 12.6% to the overall company’s net sales, which amounted to ¥178 billion. It’s noteworthy that the company’s diverse units also engage in the production of trucks, environmental systems, industrial machinery, parking systems, and equipment for managing large volumes of fluids.
