Spirit Aero posts 38% drop in quarterly net income

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Spirit AeroSystems posted a 38% drop in net income, despite reporting stronger first quarter revenues driven by model mix.

Net income was $35 million for the first quarter of 2011, down from $56 million during the same period in 2010, due to research and development expenses associated with the larger Boeing 787-9 and a $28 million pre-tax charge on the Sikorsky CH-53K helicopter programme.

Operating income was $70 million for the quarter, off 25% from $93 million during the same period in 2010.

Revenues climbed 1% to 1.05 billion, up from $1.043 billion a year earlier, while the company's backlog of work stood at $28.2 billion.

Additionally, the aerostructures supplier "updated its contract profitability estimates" on its A350 XWB wing development work, resulting in a pre-tax $3 million downward adjustment in the contract's profitability.

Spirit says this was in part offset by improvements in efficiency in its propulsion unit, but the $3 million figure was down from $8 million in the first quarter 2010.

The company during the first quarter delivered 259 shipsets; 127 to Airbus and 124 to Boeing, including 6 787 shipsets delivered to Boeing widebody final assembly in Everett, Washington.