Spirit AeroSystems Holdings Inc.’s
SPR,
said Wednesday it had a net loss of $204 million, or $1.94 a share, in the third quarter, wider than the loss of $128 million, or $1.22 a share, posted in the year-earlier period. The company’s adjusted loss came to $1.42 a share, narrower than the $1.54 loss forecast by FactSet analysts. Revenue rose 13% to $1.439 billion from $1.277 billion, below the $1.462 billion FactSet consensus. The company said the agreement it reached with Boeing in October to smooth out production issues will be reflected in its fourth-quarter earnings. The aircraft components maker and Boeing
BA,
agreed to an expanded production pact, after disclosing on Aug. 24 quality issues with the Boeing 737 Max aircraft that led to delivery delays. Boeing is a major client of Spirit’s, accounting for almost two-thirds of its business. “Our priority is to strengthen Spirit financially. The signing of the memorandum of agreement with Boeing was an important step forward. In parallel, the Spirit team is focused on meeting our customer commitments, improving operational performance and commercial conversations with Airbus,” CEO Pat Shanahan said in a statement. Spirit is now expecting full-year cash used in operations of $150 million to $200 million. It expects free cash flow usage of $275 million to $325 million. “This outlook reflects lower projected Boeing 737 deliveries of 345 to 360 units for the year,” said the statement. The stock has fallen 24% in the year to date, while the S&P 500
SPX,
has gained 9%.
