WICHITA, Kan., April 5, 2019 /PRNewswire/ -- Spirit
AeroSystems [NYSE: SPR] today announced the company will
maintain its 737 deliveries to Boeing at the current rate of 52
shipsets per month. This follows the recent announcement by Boeing
that it will temporarily adjust its 737 production from 52 to 42
airplanes per month starting in mid-April.
"Spirit and Boeing have agreed to work together to minimize the
disruption to Spirit operations and the supply chain," said
Tom Gentile, Spirit AeroSystems
President and CEO. "This is a challenging time for our industry,
and we are working with our customer Boeing to support them as they
focus on returning the MAX to service."
Spirit will store accumulated 737 MAX shipsets at its
facilities. Those shipsets will then be transferred to Boeing to
support their production plan.
"This staggered production approach allows us and our supply
base to better prepare for and support 737 production," said
Gentile.
Spirit said it will minimize any impact to its full-time
workforce by reducing contractors and overtime, and suspending
hiring to backfill open positions.
On the web: www.spiritaero.com
On Twitter: @SpiritAero
About Spirit AeroSystems Inc.
Spirit
AeroSystems designs and builds aerostructures for both commercial
and defense customers. With headquarters in Wichita, Kansas, Spirit operates
sites in the U.S., U.K., France and Malaysia. The company's
core products include fuselages, pylons, nacelles and wing
components for the world's premier
aircraft. Spirit AeroSystems focuses
on affordable, innovative
composite and aluminum manufacturing solutions to support customers
around the globe. More information is available
at www.SpiritAero.com.
This press release includes "forward-looking statements."
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "aim," "anticipate,"
"believe," "could," "continue," "estimate," "expect," "forecast,"
"goal," "intend," "may," "might," "objective," "plan," "predict,"
"project," "should," "target," "will," "would," and other similar
words or phrases, 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, including, but not limited
to, those described in the "Risk Factors" section of our Annual
Report on Form 10-K. 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, execution, and profitability
of new and maturing programs;
- our ability to perform our obligations under our new and
maturing commercial, business aircraft, and military development
programs, and the related recurring production, including our
ability to meet contractually required production rate
increases;
- our ability to accurately estimate and manage performance,
cost, and revenue under our contracts, including our ability to
achieve certain cost reductions with respect to the B787 program
and other programs;
- margin pressures and the potential for additional forward
losses on new and maturing programs;
- our ability and our suppliers' ability to accommodate, and the
cost of accommodating, announced increases in the build rates of
certain aircraft and expanding model mixes;
- the effect on aircraft demand and build rates of changing
customer preferences for business aircraft, including the effect of
global economic conditions on the business aircraft market and
expanding conflicts or political unrest;
- customer cancellations or deferrals as a result of global
economic uncertainty or otherwise;
- the effect of economic conditions in the industries and markets
in which we operate in the U.S. and globally and any changes
therein, including fluctuations in foreign currency exchange
rates;
- the success and timely execution of key milestones such as the
receipt of necessary regulatory approvals, including our ability to
obtain in a timely fashion any required regulatory or other third
party approvals for the consummation of our announced acquisition
of Asco, and customer adherence to their announced schedules;
- our ability to successfully negotiate, or re-negotiate, future
pricing under our supply agreements with Boeing and our other
customers;
- our ability to enter into profitable supply arrangements with
additional customers;
- the ability of all parties to satisfy their performance
requirements, including our ability to timely deliver quality
products, under existing supply contracts with our two major
customers, Boeing and Airbus, and other customers, and the risk of
non-payment 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, domestic or
international hostilities, 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;
- our ability to avoid or recover from cyber-based or other
security attacks, information technology failures, or other
disruptions;
- returns on pension plan assets and the impact of future
discount rate changes on pension obligations;
- our ability to borrow additional funds or refinance debt,
including our ability to obtain the debt to finance the purchase
price for our announced acquisition of Asco on favorable terms or
at all;
- competition from or in-sourcing by commercial aerospace
original equipment manufacturers and competition from other
aerostructures suppliers;
- the effect of governmental laws, such as U.S. export control
laws and U.S. and foreign anti-bribery laws such as the Foreign
Corrupt Practices Act and the United Kingdom Bribery Act, and
environmental laws and agency regulations, both in the U.S. and
abroad;
- the effect of changes in tax law, such as the effect of The Tax
Cuts and Jobs Act that was enacted on December 22, 2017, and changes to the
interpretations of or guidance related thereto, and the Company's
ability to accurately calculate and estimate the effect of such
changes;
- any reduction in our credit ratings;
- our dependence on our suppliers, as well as the cost and
availability of raw materials and purchased components;
- our ability to recruit and retain a critical mass of highly
skilled employees and our relationships with the unions
representing many of our employees, including our ability to avoid
labor disputes and work stoppages with respect to our union
employees;
- spending by the U.S. and other governments on defense;
- the possibility that our cash flows and our credit facility may
not be adequate for our additional capital needs or for payment of
interest on and principal of our indebtedness;
- our exposure under our revolving credit facility to higher
interest payments should interest rates increase
substantially;
- the effectiveness of any interest rate hedging programs;
- the effectiveness of our internal control over financial
reporting;
- the outcome or impact of ongoing or future litigation, claims,
and regulatory actions;
- our exposure to potential product liability and warranty
claims;
- our ability to effectively assess, manage, and integrate
acquisitions that we pursue, including our ability to successfully
integrate the Asco business and generate synergies and other cost
savings;
- the consummation of our announced acquisition of Asco while
avoiding any unexpected costs, charges, expenses, and adverse
changes to business relationships and other business disruptions
for ourselves and Asco as a result of the acquisition;
- our ability to continue selling certain receivables through our
supplier financing program;
- the risks of doing business internationally, including
fluctuations in foreign currency exchange rates, impositions of
tariffs or embargoes, trade restrictions, compliance with foreign
laws, and domestic and foreign government policies; and
- prolonged periods of inflation where we do not have adequate
inflation protection in our customer contracts, among other
things.
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.
Additional information concerning these and other factors can be
found in our filings with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q.
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SOURCE Spirit AeroSystems Inc.