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.


 
 

 
LM-AEHF

Ingenuity drives Lockheed’s AEHF program to production milestone early

Lockheed Martin has successfully integrated the propulsion core and payload module for the fourth Advanced Extremely High Frequency (AEHF) satellite nearly five months ahead of schedule. Reaching this critical milestone early a...
 
 

First all-electric propulsion satellites send first on-orbit signals

Two Boeing 702SP (small platform) satellites, the first all-electric propulsion satellites to launch, have sent initial signals from space, marking the first step toward ABS, based in Bermuda, and Eutelsat, based in Paris, being able to provide enhanced communication services to their customers. Whatís more, the satellites were launched as a conjoined stack on a...
 
 

GA-ASI, Sener team to offer Predator B to Spain

General Atomics Aeronautical Systems, Inc. and SENER, a leading Spanish engineering company, announced March 2 that they have signed a teaming agreement that promotes the use of the multi-mission Predator B® RPA to support Spain’s airborne surveillance and reconnaissance requirements.  GAASI is a leading manufacturer of Remotely Piloted Aircraft systems, radars, and electro-optic and relate...
 

 
raytheon-satellite

Raytheon’s ‘Blue Marble’ imaging sensor delivered on schedule

Raytheon has delivered a second Visible Infrared Imaging Radiometer Suite instrument to support the National Oceanic and Atmospheric Administration’s Joint Polar Satellite System mission. The second VIIRS unit will fly ab...
 
 

Airbus says net profit soared in 2014

Airbus says its net profit soared 59 percent last year as a record-high number of jet deliveries helped offset a 551 million euros end-of-year charge against its delayed A400M military transporter program. The European jet maker said Feb. 27 it made a 2.34-billion-euros ($2.62 billion) net profit in 2014, up from 1.47 billion euros in...
 
 

Lockheed Martin Australia to deliver modern, affordable C-130J training solutions to RAAF

The Royal Australian Air Force has awarded Lockheed Martin Australia a contract to supply a modern C-130J-30 Virtual Maintenance Trainer and a Multi-Function Training Aid to support maintenance and aircrew training at RAAF Base Richmond. Through this major upgrade, the RAAF will have a standardized curriculum tailored for its operations and based on decades of...
 




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>