Spirit AeroSystems Recognizes Second Quarter Charge; Establishes Business Jet Wing Production in North Carolina Facility
20 Juli 2011 - 1:31PM
PR Newswire (Canada)
WICHITA, Kan., July 20, 2011 /CNW/ -- 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. Coleen Tabor,
Investor Relations, +1-316-523-7040, or Ken Evans, Corporate
Communications, +1-316-523-4070, both for Spirit AeroSystems
Holdings, Inc. Web Site: http://www.spiritaero.com
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