Spirit AeroSystems posts $134m loss in Q3

Washington DC
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Spirit AeroSystems lost $134 million in the first quarter despite surging revenues because of previously acknowledged write-downs on several programmes.

The company's posted a 21% year-on-year jump on revenues to $1.37 billion.

But a $96.9 million year-on-year loss in Spirit AeroSystems' propulson unit, and a $407 million loss in the wing systems unit drove the company to a $390 million operating loss.

The fuselage systems segment, by contrast, grew earnings by 42.8% to $113.7 million.

The losses in the propulsion and wing segments was tied to a $439 million forward loss absorbed in the third quarter on programmes Spirit AeroSystems acknowledges were poorly managed.

"I am extremely disappointed in our management of the complexity on those programmes," says Jeff Turner, chief executive of Spirit AeroSystems.

He adds the focus is now on applying lessons from those mistakes and reducing costs in those programmes as they accelerate to full-rate production. The charges mainly involved work performed at the company's factories in Tulsa, Oklahoma for Gulfstream and in Malaysia for Boeing.

The company also concluded an insurance settlement during the quarter for damages caused by a tornado that struck Wichita on 14 April, but the $235 million claim was $165 million lower than the company's estimated value of the damages.