Business

November 2, 2012

Spirit AeroSystems posts loss on productivity woes

Aerospace supplier Spirit AeroSystems Holdings Inc. Nov. 1 posted a third-quarter loss on charges due to production setbacks for several aircraft.

The Wichita, Kansas, company booked $590 million in charges during the third quarter, which it announced last month. The complexity in developing some products drove up supplier, factory and labor costs, it said. The company also received a $235 million settlement from insurers for damage from an April storm that hit its Wichita plant, much less than the $400 million the company expected. The settlement partially offset the impact of the aircraft contract charges.

Spirit Aero Systems reported a net loss of $134 million, or 94 cents per share, compared with a profit of $67 million, or 47 cents per share, a year ago.

Revenue rose 21 percent to $1.37 billion.

Analysts expected a loss of 49 cents per share on revenue of $1.35 billion, according to FactSet.

“While new airplane programs are always challenging, I am extremely disappointed in our management of the complexity on these programs,” CEO Jeff Turner said in a statement. “We have struggled with the development and early production on certain programs as highlighted by the charges in the quarter. However, it is important to note that as these programs are now transitioning to full rate production and experiencing rate increases we are applying our lessons learned and focusing on driving operational performance and cost improvement.

Pretax charges include $184 million for work on the Boeing 787, $163 million for the Gulfstream G650 business jet, $151 million on the BR725 Rolls Royce engine for business jets, $88 million on the Gulfstream G280, and $4 million on other programs. AP




All of this week's top headlines to your email every Friday.


 
 

 

Headlines March 4, 2015

News: Pentagon: Another BRAC will save money - Pentagon planners have a new pitch to lawmakers skeptical of a fresh round of base closings: We promise we’ll save money this time.   Business: China’s new C919 will begin test flights this year - China’s new superjet will take to the skies for the first time later this...
 
 
Air Force photograph by SrA. Jensen Stidham

World War II pilot reunited with P-47

Air Force photograph by SrA. Jensen Stidham Retired Air National Guard Chief Warrant Officer 2 Robert Hertel, laughs while under the wing of a P-47 Thunderbolt during the Heritage Flight Training and Certification Course Feb. 2...
 
 

News Briefs March 4, 2015

General: 8,500 Islamic State fighters killed in Iraq so far The U.S.-led military coalition in Iraq has killed more than 8,500 Islamic State fighters since its bombing campaign began in August, the top general overseeing the coalition said March 3. Army Gen. Lloyd Austin, the commander of U.S. Central Command, said the Islamic State, which...
 

 
Lockheed Martin photograph

Turning up the heat

Lockheed Martin photograph Lockheed Martin ATHENA laser weapon system defeats a truck target by disabling the engine, demonstrating its military effectiveness against enemy ground vehicles. Latest evolution of Lockheed Martin l...
 
 

USO Visit

Air Force photograph by Jet Fabara Actor Vince Vaughn speaks with Edwards Airmen and 412th Security Forces Squadron members at the base library before introducing an advance screening of his new movie, “Unfinished Business,” at the base theater Feb. 28.
 
 

Sikorsky S-97 RAIDERô team begins final assembly of second aircraft

Sikorsky Aircraft Corp., a subsidiary of United Technologies Corp., announced March 4 the start of final assembly of the second S-97 RAIDERô helicopter at the company’s Development Flight Center. Along with a team of industry suppliers, Sikorsky is developing two RAIDERô prototypes to demonstrate the revolutionary new capabilities in improved maneuverability and flight speed. The...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>