Spirit AeroSystems posts third-quarter net loss of US$156 million

Spirit’s third quarter of 2020 revenue was US$806 million, down from the same period of 2019, primarily due to the significantly lower 737 MAX production resulting from the grounding of the program and the impacts of COVID-19. Deliveries decreased to 206 shipsets during the third quarter of 2020 compared to 437 shipsets in the same period of 2019, including Boeing 737 MAX deliveries of 15 shipsets compared to 154 shipsets in the same period of the prior year.  

Spirit’s backlog at the end of the third quarter of 2020 was approximately US$40 billion, with work packages on all commercial platforms in the Boeing and Airbus backlog.

Operating loss for the third quarter of 2020 was US$(177) million, down compared to operating income of US$206 million in the same period of 2019. Included in the 2020 operating loss were excess capacity costs of US$72.6 million, forward loss charges of US$(128.4) million, primarily driven by the lower production rates announced by Boeing and Airbus on the 787 and A350 programs, and restructuring expenses of US$19.5 million for cost-alignment and headcount reductions. In comparison, during the third quarter of 2019, Spirit recorded US$(28.8) million of net forward loss charges.

Spirit reported a third-quarter net loss of US$(156) million and cash from operations of US$(53) million, down from US$255 million in the same quarter last year, primarily due to negative impacts of working capital requirements and significantly lower production deliveries, partially offset by favorable cash tax.

On October 30, the company closed the acquisition of select Bombardier assets. Prior to the closing, on October 26, 2020, Spirit, Bombardier, Inc. and certain of their affiliates entered into an amendment to the purchase agreement that reduced the net proceeds purchase price payable to the sellers from US$500 million to US$275 million.

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