By Tess Stynes
Spirit AeroSystems Holdings Inc. (SPR) expects to post a
combined $590 million in forward loss charges for the third quarter
related to projects for General Dynamics Corp.'s (GD) Gulfsteam
G650 wing program and Boeing Co.'s (BA) 787 Dreamliner program.
The aerospace industry supplier's shares were down 17% at $17.95
in recent premarket trading.
"The execution of our diversification and growth strategy has
proven very complex," said Spirit AeroSystems President and Chief
Executive Jeff Turner. "As we rapidly expanded our customer-base,
manufacturing sites, and product design capabilities, while
managing multiple development programs with significant design
changes and schedule delays. It is unfortunate that we have
struggled on these development efforts."
The company said it has continued to increase production rates
on a number of newly certified programs, but no longer expects to
acheive strong enough cost targets amid increasing supply chain,
factory support, and labor costs.
Separately, the company expects to post a gain of $130 million
during the fourth quarter amid a settlement of claims related to
tornado damage at its flagship Wichita, Kan., facility in
April.
Spirit AeroSystems plans to provide more details during a
conference call Thursday at noon New York time. The company plans
to release its third-quarter financial results Nov. 1.
Write to Tess Stynes at Tess.Stynes@dowjones.com
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