Spirit AeroSystems Slips To Loss On Charges, But Tops View - Update

(RTTNews) - Spirit AeroSystems Holdings Inc. (SPR) Monday reported a swing to loss in the second quarter, hurt mainly by charges linked to its Gulfstream programs, even as revenues climbed thirteen percent amid a buoyant commercial aircraft market. Excluding items, the company posted a profit that topped Wall Street estimates.

Spirit makes commercial aerostructures for original equipment manufacturers.

The Wichita, Kansas-based company posted second-quarter net loss of $209 million or $1.47 per share, compared with net income of $35 million or $0.24 per share last year.

Results for the quarter included pre-tax charge of $448 million primarily on Gulfstream programs.

Excluding items, adjusted earnings for the quarter were $0.72 per share, compared with $0.50 per share a year ago. On average, 11 analysts polled by Thomson Reuters expected earnings $0.50 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the second quarter grew 13 percent to $1.5 billion from $1.34 billion last year. Analysts expected revenues of $1.48 billion for the quarter.

By segments, propulsion systems revenue climbed 19 percent, and fuselage systems grew 16.7 percent. Wing systems revenue edged up 3 percent from a year ago.

Results were hurt by cost of sales that rose to $1.7 billion from $1.2 billion in the prior year.

Spirit's backlog at the end of the quarter was about $38 billion.

In May, Spirit announced a strategic review of its development programs in Tulsa, Wichita, Kinston, and St. Nazaire and suspended its financial guidance. The review is on-going and may result in additional strategic decisions and financial impact, the company said. Last month, Spirit laid-off about 360 salaried support and management employees at its Kansas and Oklahoma facilities.

The company's stock closed Monday at $24.65, down $0.30 or 1.20%, on a volume of about 1 million shares on the NYSE.