Spirit AeroSystems Holdings Inc said on Wednesday it expects a $31 million hit to full-year gross profit from disruptions and rework related to a Boeing 737 MAX fuselage production problem, and that more related costs are anticipated.
it had paused deliveries of some 737 MAXs due to a problem involving two fittings that join the aft fuselage made by Spirit to the vertical tail, which were not attached correctly.
Spirit now expects cash burn of about $100 million to $150 million in 2023 due to the risk of lowered 737 fuselage deliveries. Spirit initially expected 420 deliveries this year, but may deliver only up to 390 fuselages for 737s, CEO Tom Gentile told investors during an earnings call. Overall, "it looks like the cost of 737 rework could be below some of the most dire estimates," said J.P. Morgan analyst Seth Seifman in a note to investors. "The implication is that rework is a fraction of the cost, with the bulk being factory disruption."
The company also announced $110 million in forward loss charges on the Airbus A220, Airbus A350 and Boeing 787. Losses on the A220 amounted to about $81 million, including $46 million in nonrecurring supply-chain costs that were due to a "distressed supplier," Gentile said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Boeing supplier Spirit Aero flags $31 mln hit from 737 fuselage defectSpirit AeroSystems Holdings Inc said on Wednesday it expects a $31 million hit to full-year gross profit from disruptions and rework related to a Boeing 737 MAX fuselage production problem, and that more related costs are anticipated.
Read more »
Prime Minister Justin Trudeau Honors Gordon Lightfoot, Whose Songs ‘Captured the Canadian Spirit’Canadian Prime Minister Justin Trudeau issued a statement honoring legendary singer-songwriter Gordon Lightfoot, who died Monday at the age of 84. In it, he recalls meeting Lightfoot as a child, wh…
Read more »
Carnival begins sales for 2024, 2025 Spirit cruises out of MobileThe new CarnivalCruise sailings from Mobile include five-, six-, and eight-day Caribbean itineraries, as well as a 12-day Carnival Journeys South Caribbean cruise — some of the longest Carnival cruises from the Alabama Cruise Terminal.
Read more »
Mini Cooper Electric (2024) prototype review: recapturing the spiritOur first go in the new 2024 Mini: 'As Mini embraces digital and electric, thank goodness it still pulls out all the dynamic stops' 🏁
Read more »