WICHITA, Kan., June 10, 2020 /PRNewswire/ -- On June 4, 2020, Spirit AeroSystems [NYSE: SPR]
received a letter from Boeing directing Spirit to pause additional
work on four 737 MAX shipsets and avoid starting production on
sixteen 737 MAX shipsets to be delivered in 2020, until otherwise
directed by Boeing, in order to support Boeing's alignment of
near-term delivery schedules to its customers' needs in light of
COVID-19's impact on air travel and airline operations, and in
order to mitigate the expenditure of potential unnecessary
production costs.
Based on the information in the letter, subsequent
correspondence from Boeing dated June 9,
2020, and Spirit's discussions with Boeing regarding 2020
737 MAX production, Spirit believes there will be a reduction to
Spirit's previously disclosed 2020 737 MAX production plan of 125
shipsets. Spirit does not yet have definitive information on what
the magnitude of the reduction will be but expects it will be more
than 20 shipsets.
The 737 MAX grounding coupled with the COVID-19 pandemic is a
challenging, dynamic and evolving situation. During this time,
Spirit plans to work with Boeing to determine a definitive
production plan for 2020 and manage the 737 MAX production system
and supply chain.
Due to the matters described above, Spirit has elected to place
certain Wichita hourly employees
directly associated with production work and support functions for
the 737 MAX program on a 21 calendar day unpaid temporary
layoff/furlough effective Monday, June
15. In addition, Spirit will declare an immediate reduction
of the hourly workforce in Tulsa
and McAlester, Okla., effective
Friday, June 12.
Spirit remains a proud partner on the 737 MAX program and looks
forward to working with Boeing to ensure the long-term success of
the program.
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.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains
"forward-looking statements" that may involve many risks and
uncertainties. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as "aim,"
"anticipate," "believe," "could," "continue," "estimate," "expect,"
"goal," "forecast," "intend," "may," "might," "objective,"
"outlook," "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. 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, without limitation, the timing and conditions surrounding
the return to service of the 737 MAX and any related impacts on our
production rate; our reliance on Boeing for a significant portion
of our revenues; our ability to execute our growth strategy,
including our ability to timely complete and integrate our
announced Asco and Bombardier acquisitions; our ability to
accurately estimate and manage performance, cost, and revenue under
our contracts; demand for our products and services and the effect
of economic or geopolitical conditions in the industries and
markets in which we operate in the U.S. and globally; our ability
to manage our liquidity, borrow additional funds or refinance debt;
the impact of the COVID-19 pandemic on our business and operations,
including on the demand for our and our customers' products and
services, on trade and transport restrictions, on the global
aerospace supply chain, on our ability to retain the skilled work
force necessary for production and development and generally on our
ability to effectively manage the impacts of the COVID-19 pandemic
on our business operations; and other factors disclosed in our
filings with the Securities and Exchange Commission. 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. 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.
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SOURCE Spirit AeroSystems