Spirit AeroSystems posts first-quarter net loss of US$167.5 million

Spirit’s first-quarter 2020 revenue was US$1.1 billion, down 45% from the same period in 2019, primarily due to the 737 MAX production suspension directed by Boeing that began on January 1, 2020.

Deliveries decreased to 324 shipsets during the first quarter of 2020 compared to 453 shipsets in the same period of 2019, including Boeing 737 MAX deliveries of 18 shipsets compared to 152 shipsets in the same period of the prior year.

Spirit’s backlog at the end of the first quarter of 2020 was approximately US$42 billion, down US$1 billion from the previous quarter, with work packages on all commercial platforms in the Boeing and Airbus backlog.

Operating loss for the first quarter of 2020 was US$(167.5) million, down compared to operating income of US$233 million in the same period of 2019. As a result of Boeing’s 737 MAX production suspension that began on January 1, 2020, Spirit recognized the lower margin driven by significantly less deliveries, excess capacity costs of US$73.4 million, and restructuring expenses of US$42.6 million for cost-alignment and headcount reductions.

Cash from operations in the first quarter of 2020 was US$(331) million, down from US$242 million in the same quarter last year, primarily due to negative impacts of working capital requirements largely driven by supplier payments made following the 737 MAX production suspension, partially offset by US$215 million received related to the February 2020 memorandum of agreement with Boeing. Free cash flow in the first quarter of 2020 was US$(362) million, down compared to US$201 million in the same period of 2019.

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