2025.02.28
- AST’s Key Customer Boeing Faces Q4 Loss Due to 7-Week Strike
- Delivered 348 Aircraft Last Year… Aims for Around 570 This Year
- “Expecting Strong Performance from Increased Deliveries and Price Hikes”
[Edaily Market In – Reporter Kwon So-hyun]
With Boeing planning to normalize its aircraft production this year, expectations are rising for increased orders for AST (067390), a South Korean precision aircraft parts manufacturer. As Boeing recovers from last year’s strike-related disruptions, the anticipated increase in aircraft production is expected to drive higher demand for components.
At the end of last month, Boeing announced its fourth-quarter earnings, revealing a backlog of $521 billion in orders as of year-end. In 2023, the company delivered 348 aircraft and recorded 278 net orders.
Last year, Boeing faced significant disruptions in aircraft production and deliveries due to a seven-week-long labor strike starting in September. Additionally, increased costs from defense programs led to a net loss of $5.46 per share in Q4.
However, with the strike now over, production facilities are returning to normal operations, and deliveries are expected to increase compared to last year. Within a month of the strike’s conclusion, Boeing resumed production of the 737 MAX. Meanwhile, the company has announced plans to expand production at its South Carolina facility for the 787, which had been limited to just five units per month last year.
During an earnings conference call, Boeing CEO Kelly Ottburg stated, “If we receive approval from the Federal Aviation Administration (FAA), we plan to increase monthly production of the 737 to 38, and possibly up to 42 aircraft,” adding that “we have sufficient component inventory to support a production rate of 38 aircraft per month.”
Boeing’s January aircraft deliveries doubled compared to the same month last year, reaching 45 units. Additionally, in January, the company resumed FAA certification testing for the 777X model and expects to deliver the first 777-9 aircraft next year.
A representative from AST stated, “With Boeing’s production normalization leading to increased deliveries and an expected price hike for Spirit (SPIRIT), a major revenue contributor, we anticipate a full-scale turnaround to profitability.”
AST’s consolidated revenue for last year was KRW 171.4 billion, marking a 1.7% increase from the previous year. Although the company recorded an annual operating loss of KRW 8.3 billion, it turned a profit in both Q3 and Q4, aiming to maintain a quarterly profit trend throughout this year.
Founded in 2014 as a technology-driven growth company, AST was listed on the KOSDAQ market. Initially focused on manufacturing basic aircraft fuselages and components, the company has since evolved into the only South Korean Tier 1 supplier for all four major global aerospace manufacturers.
Reporter Kwon So-hyun (juddie@edaily.co.kr)