Spirit AeroSystems Buys Wing-Making Unit to Diversify Beyond MAX
31 Oktober 2019 - 4:18PM
Dow Jones News
By Doug Cameron
Spirit AeroSystems Holding Inc. agreed to buy an aircraft
wing-making business from Bombardier Inc., as the supplier works to
diversify its customer base beyond Boeing Co.'s troubled 737
MAX.
Spirit said Thursday that it will pay $1.1 billion for
Bombardier facilities in Northern Ireland, Morocco and Texas that
make parts for the Airbus SE A320 and A220 jets, helping cushion
the disruption from the continued grounding and slowed production
of the MAX.
Shares rose almost 5% in early trade.
Spirit is the largest supplier on the Boeing jet, but continues
to produce 52 fuselages and other parts a month, even though the
U.S. aerospace giant is only assembling 42, storing the finished
jets as it works on fixes to the plane that still need to be
approved by regulators in the U.S. and around the world.
The MAX was grounded globally in March after the second of two
fatal crashes in some five months. Most MAX suppliers have
continued to provide parts at Boeing's current 42-a-month assembly
rate, even as the company builds up a backlog of more than 300
undelivered planes.
The MAX accounts for an estimated 50% of Spirit's annual sales.
A former Boeing unit, Spirit was spun off in 2006 and remains
heavily tied to work on the workhorse jet and the 787
Dreamliner.
Buying the Bombardier assets, part of the Canadian company's
break-up of its aerospace business, is part of a three-pronged
strategy at Spirit to secure more business at Airbus, expand work
on military aircraft and helicopters and build up non-U.S.
operations.
The purchase of the wing making facility in Belfast gives Spirit
access to the Airbus A220 program bought from Bombardier as well as
the potential for work on the next generation of single-aisle
jets.
The company said that it will continue making fuselages and
other parts for the MAX at the same rate of 52 a month, but the
grounding derailed plans to boost monthly output to 57 in the
summer, weighing on costs and profits.
Spirit said its profit fell to $131 million from $169 million
for the latest quarter, shy of analysts' expectations. Sales rose
6% to $1.92 billion.
--Colin Kellaher contributed to this article.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
October 31, 2019 11:03 ET (15:03 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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