WICHITA, Kan., July 20, 2011 /PRNewswire/ -- Spirit AeroSystems
Holdings, Inc. (NYSE: SPR) today announced that it will record a
pre-tax charge of approximately $53
million, or $0.26 per share in
the second quarter 2011 as it recognizes additional cost growth on
the Gulfstream G250 wing program and establishes program management
and production at its North
Carolina facility. The company expects to report fully
diluted earnings per share for the second quarter of between
$0.19 and $0.21 per share, including
the impact of the charge.
"We have evaluated a variety of options to offset the
development cost growth and to improve manufacturing costs on the
program, while creating the necessary capacity in our Tulsa, Okla., facility for multiple growth
programs," said Phil Anderson,
Senior Vice President and Chief Financial Officer. "The transition
of the G250 wing to North Carolina
is the right long-term cost mitigation plan and the best long-term
solution for our customer and Spirit as we manage the company's
growth."
These costs will be recorded as additional forward-loss in the
company's Wing Segment in the second quarter 2011 results.
The company will update its 2011 full year guidance when it
reports second quarter 2011 results on Aug.
4, 2011.
On the web: http://www.spiritaero.com
About Spirit AeroSystems, Inc.
Based in Wichita, Kan., Spirit
AeroSystems is one of the world's largest independent suppliers of
commercial airplane assemblies and components. In addition to its
Kansas facility, Spirit has
locations in Tulsa and
McAlester, Okla.; Kinston, N.C.; Prestwick, Scotland; Preston,
England; Kuala Lumpur,
Malaysia; and is developing a new manufacturing facility in
Saint-Nazaire, France. In the
U.S., Spirit's core products include fuselages, pylons, nacelles
and wing components. Additionally, Spirit provides aftermarket
customer support services, including spare parts,
maintenance/repair/overhaul, and fleet support services in
North America, Europe and Asia. Spirit Europe produces wing components for a host of
customers, including Airbus.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains "forward-looking statements."
Forward-looking statements reflect our current expectations or
forecasts of future events. Forward-looking statements generally
can be identified by the use of forward-looking terminology such as
"may," "will," "expect," "anticipate," "intend," "estimate,"
"believe," "project," "continue," "plan," "forecast," or other
similar words, or the negative thereof, unless the context requires
otherwise. These statements reflect management's current views with
respect to future events and are subject to risks and
uncertainties, both known and unknown. Our actual results may vary
materially from those anticipated in forward-looking statements. We
caution investors not to place undue reliance on any
forward-looking statements. Important factors that could cause
actual results to differ materially from those reflected in such
forward-looking statements and that should be considered in
evaluating our outlook include, but are not limited to, the
following: our ability to continue to grow our business and execute
our growth strategy, including the timing and execution of new
programs; our ability to perform our obligations and manage costs
related to our new commercial and business aircraft development
programs and the related recurring production; potential reduction
in the build rates of certain Boeing aircraft including, but not
limited to, the B737 program, the B747 program, the B767 program
and the B777 program, and build rates of the Airbus A320 and A380
programs, which could be negatively impacted by continuing weakness
in the global economy and economic challenges facing commercial
airlines, and by a lack of business and consumer confidence and the
impact of continuing instability in the global financial and credit
markets, including, but not limited to, sovereign debt concerns in
Europe; declining business jet
manufacturing rates and customer cancellations or deferrals as a
result of the weakened global economy; the success and timely
execution of key milestones such as certification and delivery of
Boeing's new B787 and Airbus' new A350 XWB aircraft programs,
including receipt of necessary regulatory approvals and customer
adherence to their announced schedules; our ability to enter into
supply arrangements with additional customers and the ability of
all parties to satisfy their performance requirements under
existing supply contracts with Boeing and Airbus, our two major
customers, and other customers and the risk of nonpayment by such
customers; any adverse impact on Boeing's and Airbus' production of
aircraft resulting from cancellations, deferrals or reduced orders
by their customers or from labor disputes or acts of terrorism; any
adverse impact on the demand for air travel or our operations from
the outbreak of diseases or epidemic or pandemic outbreaks; returns
on pension plan assets and impact of future discount rate changes
on pension obligations; our ability to borrow additional funds or
refinance debt; competition from original equipment manufacturers
and other aerostructures suppliers; the effect of governmental
laws, such as U.S. export control laws, the Foreign Corrupt
Practices Act, environmental laws and agency regulations, both in
the U.S. and abroad; the cost and availability of raw materials and
purchased components; our ability to successfully extend or
renegotiate our primary collective bargaining contracts with our
labor unions; our ability to recruit and retain highly skilled
employees and our relationships with the unions representing many
of our employees; spending by the U.S. and other governments on
defense; the possibility that our cash flows and borrowing
facilities may not be adequate for our additional capital needs or
for payment of interest on and principal of our indebtedness and
the possibility that we may be unable to borrow additional funds or
refinance debt; our exposure under our revolving credit facility to
higher interest payments should interest rates increase
substantially; the outcome or impact of ongoing or future
litigation and regulatory actions; and our exposure to potential
product liability and warranty claims. These factors are not
exhaustive and it is not possible for us to predict all factors
that could cause actual results to differ materially from those
reflected in our forward-looking statements. These factors
speak only as of the date hereof, and new factors may emerge or
changes to the foregoing factors may occur that could impact our
business. As with any projection or forecast, these statements are
inherently susceptible to uncertainty and changes in circumstances.
Except to the extent required by law, we undertake no obligation
to, and expressly disclaim any obligation to, publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. You should review
carefully the sections captioned "Risk Factors" in our 2010 Form
10-K filed February 22, 2011 and our
first quarter 2011 Form 10-Q filed May 6,
2011 for a more complete discussion of these and other
factors that may affect our business.
SOURCE Spirit AeroSystems Holdings, Inc.