Seoul: Korea Aerospace Industries Ltd. (KAI), the only aircraft manufacturer in South Korea, announced a significant drop in its net profit for the third quarter, reflecting a 42.6 percent decrease from the previous year. This downturn has been attributed to delays in recognizing a military contract, impacting the company's financial results.

According to Yonhap News Agency, KAI's net profit for the quarter ending in September plummeted to 39 billion won (approximately US$26.9 million), a substantial decline from the 67.9 billion won recorded in the same period last year. The company disclosed these figures in a regulatory filing, highlighting the challenges faced due to contractual delays.

A spokesperson for KAI explained, "Sales from light-armed helicopter contracts, initially expected to be reflected in third-quarter earnings, will instead be recognized in the fourth quarter following delays in the deal with the Army." This postponement in sales recognition has significantly impacted the company's quarterly financial performance.

The company also reported a decrease in its operating profit, which fell 21.1 percent to 60.2 billion won from 76.3 billion won in the previous year. Additionally, sales saw a decline of 22.6 percent, amounting to 702.1 billion won, down from 907.2 billion won a year earlier.

For the first nine months of the year, the company's net income decreased by 21 percent, totaling 125.2 billion won compared to 158.5 billion won in the previous year. Similarly, operating profit saw a decline of 3.2 percent on-year, reaching 192.2 billion won, with sales dropping 12.2 percent to 2.23 trillion won.