Japanese engine bellwether IHI saw third quarter revenues at its Aero engine, Space and Defence unit rise 10.4% to Y178 billion ($1.5 billion) on improving demand for spare parts.
The unit also improved its operating performance in the third quarter of its 2021 fiscal year to 31 December, with operating losses narrowing to Y5.5 billion from Y29.8 billion a year earlier.
“In addition to increased sales of engines and spare parts in civil aero engines, revenue increased in rocket systems and space utilisation systems,” says IHI.
The company was also helped by the depreciation of the Yen against the US dollar.
Nonetheless, the aerospace unit’s revenue of Y178 billion for the quarter is still well below the Y245 billion in revenue it generated in the pre-pandemic third quarter of its 2019 financial year.
Based on a more upbeat assessment for the engine market, IHI forecasts that the aerospace unit will post a full-year operating loss of Y13 billion, compared with November’s forecast of Y25 billion. In its previous financial year, the aerospace unit’s operating loss came in at Y40.1 billion.
IHI has workshare on engines such as the International Engine Alliance V2500, the General Electric CF34, GE90 and GEnx, as well as the Pratt & Whitney PW1100G and Rolls-Royce Passport20.
The company’s other units are involved in energy, infrastructure, and industrial machinery. The aerospace unit contributes roughly a quarter of overall revenue.