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 November 26, 2014

News: When Hagel leaves, new SecDef faces big questions about the military’s futureĀ - President Obama’s new pick to run the Pentagon will face a dizzying set of challenges affecting the Defense Department’s mission, budget and culture. Who will be the next Secretary of Defense?- Following the Nov. 24 surprise announcement from the White House, the...
 
 

News Briefs November 26, 2014

Navy to decommission two more ships in Puget Sound The Navy recently decommissioned the guided missile frigate USS Ingraham at Everett, Wash. It will be towed to Bremerton and scrapped. The Daily Herald reports the Navy also plans to decommission another ship at the Everett homeport and also one stationed in Bremerton. Naval Station Everett...
 
 

NASA airborne campaigns tackle climate questions from Africa to Arctic

NASA photograph The DC-8 airborne laboratory is one of several NASA aircraft that will fly in support of five new investigations into how different aspects of the interconnected Earth system influence climate change. NASA photograph The DC-8 airborne laboratory is one of several NASA aircraft that will fly in support of five new investigations into...
 

 
Air Force photograph by Rick Goodfriend

16T Pitch Boom reactivated to support wind tunnel tests

Air Force photograph by Rick Goodfriend The Pitch Boom at the AEDC 16-foot transonic wind tunnel (16T) was recently reactivated. This model support system is used in conjunction with a roll mechanism to provide a combined pitch...
 
 

Northrop Grumman supports U.S. Air Force Minuteman missile test launch

Northrop Grumman recently supported the successful flight testing of the U.S. Air Force’s Minuteman III intercontinental ballistic missile weapon system. The operational flight test was conducted as part of the Air Force Global Strike Command’s Force Development Evaluation Program. This program demonstrates and supports assessment of the accuracy, availability and reliability of the...
 
 
army-detector

Scientists turn handheld JCAD into a dual-use chemical, explosives detector

Scientists at the U.S. Army Edgewood Chemical Biological Center at Aberdeen Proving Ground, Md., proved it is possible to teach an old dog new tricks by adding the ability to detect explosive materials to the Joint Chemical Age...
 




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>