Jihostroj plans sales over a billion for the first time, cooperates with Honda in Japan

by   CIJ News iDesk III
2024-01-12   10:51
/uploads/posts/14bc869f96cde2a587599d50bcd73de082090622/images/1931541682.jpg

Jihostroj, which produces hydraulic elements and aeronautical instruments in Velešín, had sales of CZK 928 million last year. They rose by ten percent year-on-year. The company is cooperating with Honda on an urban air mobility project, where flying should replace ground transport in Japan, announced Jihostroj's director for strategy and marketing Hynek Walner. The company has 430 employees, is projecting sales of just over a billion for the first time this year and expects an operating profit of over 110 million.

"We are close to a billion in sales last year and we expect an above-average EBITDA (gross operating profit) of around six percent in the industry. We continue to ramp up projects. In the hydraulics division it is the development of dividers, flow multipliers, in the aviation division fuel control systems with the application of electronics in the More Electric Aircraft concept. Collaboration with global manufacturer Honda on the urban air mobility project, a replacement for ground transportation in Japan's congested urban areas, is also continuing," the director said.

The company had projected a pre-tax profit of 116 million for last year; it has not yet indicated what it is. It invested nearly 90 million last year. In 2022, it had sales of 841.3 million, pre-tax profit of 145 million and after-tax profit of 123 million; it invested 102 million. Exports accounted for 69 per cent of turnover the year before last. The company exported most to the US, which accounted for 54 per cent of exports, followed by the EU (25 per cent) and Russia (seven per cent). This is according to the annual report. About two-thirds of the company's sales come from its hydraulic division, which supplies parts for construction and agricultural machinery and trucks. Its main export markets are the US and Germany. Supplies to Israel and South Korea are being developed.

Jihostroj plans to invest 60 million this year and will continue with robotization. The company is doing well with fuel pumps for helicopters and aircraft. It has also started mass-producing instruments for a supersonic aircraft, the South Korean KF-21 Boramae fighter. It supplies hydraulic engines for cars, tractors and buses, mainly to the US and Germany.

The company has 431 employees and plans to increase the number by eight per cent this year. It is looking for skilled blue-collar and technical jobs. The average gross wage in the company last year was almost CZK 49,000. This year, the average nominal wage will rise by at least five per cent, Walner said.

Jihostroj has a tradition since 1919, when the Jevan company was founded, which first offered telegraphs and telephones.

Source: Jihostroj and CTK
Photo: Jihostroj