Yahoo Finance Boeing supplier Spirit Aero posts profit, delays providing 2024 forecast
Feb 6 (Reuters) — Spirit AeroSystems put off providing a forecast for 2024 on Tuesday, citing uncertainty on timing of 737 MAX production increases at Boeing as well as ongoing negotiations with Airbus over A220 program costs.
Spirit and Boeing, its largest customer, are on the radar of investors, regulators and lawmakers following a cabin panel blowout on an Alaska Airlines MAX 9 aircraft last month.
There were no serious injuries, but the incident re-kindled concerns over quality and safety and the U.S. Federal Aviation Administration (FAA) has barred expanding production of 737 MAX without estimating how long the limitation will last.
"Speaking on behalf of everyone at Spirit, the quality and safety of the products we produce is paramount above all,” Interim CEO Patrick Shanahan said on Tuesday.
Boeing has said it would continue to buy parts from suppliers despite the cap on production but a prolonged restriction may end up piling parts at suppliers, whose cash flows have come under pressure due to supply logjams.
Spirit Aero's free cash flow has also come under pressure from the quality issues surrounding the 737 MAX jet. Its shares have fallen 15.8% since the mid-air blowout in early January. They were little changed in early trading on Tuesday.
The company reported an adjusted profit per share of 48 cents for the quarter through December, compared to a loss per share of $1.46 a year earlier.
Quarterly free cash flow was $42 million, compared with a cash burn of $66 million last year, powered by a $100 million funding Spirit received from Boeing to help tackle rising production costs during the quarter.
Revenue rose 37% to $1.81 billion due to higher parts deliveries on both Boeing and Airbus commercial jet programs.
Shanahan, who took the job in October, has said returning Spirit to positive cash flow will be his main goal.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila)
