Spirit Aero Swings To Q3 Loss
Spirit AeroSystems, which supplies parts to major aircraft makers, reported a loss for the third quarter, due to cost overruns on several aircraft models.
The company said it lost USD$134 million in the quarter, compared with earnings of USD$67 million a year earlier.
The loss was widely expected after the company warned last week that it would take a USD$590 million charge in the quarter because of production problems at its facilities in Tulsa, Oklahoma.
The company reiterated on Thursday that it would try to renegotiate contracts with its customers, which include Boeing and Gulfstream, to help reduce losses on the work it performs for those companies.
However, Jeff Turner, Spirit's CEO, acknowledged that the scope to make changes may be limited.
"Most of our contracts... are based on the assumption that we will perform to the requirements on the contract," he said.
The company said revenue rose 21 percent in the quarter to USD$1.365 billion.
In addition to the charge from production problems, the company booked a gain of USD$219 million in the quarter from a settlement of insurance claims for storm damage to its facilities in Wichita.