Spirit AeroSystems’ financial losses continued piling up in the third quarter, with the firm losing $724 million as it marched toward closing its planned acquisition by Boeing.
Spirit’s losses in the first nine months of the year came to $2 billion, a performance the company attributes primarily to elevated costs associated with producing components for aircraft including Boeing 737s, 787s and Airbus A220s, A320s and A350s.
The Wichita aerostructures producer ended the quarter with $299 million in cash and cash equivalents, down from $537 million at the end of last year.
Though Spirit’s cash reserves are dwindling, the company still expects before year-end to close a deal that will see it acquired by Boeing.
As part of that deal, Airbus will acquire Spirit assets related to Airbus work, including A220 pylon production in Wichita, A220 wing and mid-fuselage manufacturing in Belfast, A320neo and A350 wing component work in Prestwick (Scotland), A350 fuselage work in St Nazaire (France) and Kinston (North Carolina), and A320 work in Casablanca.
Separately, Spirit intends to sell its business in Subang (Malaysia) to Composites Technology Research Malaysia for $95.2 million. That site supplies components for A220s, A320s, A350s, 737s and 787s.
Spirit’s $724 million third-quarter loss includes $585 million in forward losses taken by the company to account for increased production costs. Spirit also took a $55 million third-quarter charge that it attributes to excess manufacturing capacity.
Financial stress aside, Spirit managed to significantly increase deliveries in the third quarter, handing over shipsets for 392 aircraft, up from 332 in the third quarter of last year. Notably, it delivered 90 737 fuselages in the third quarter, up from 64 in the prior-year period.
