Spirit AeroSystems 2nd quarter revenues up

Spirit AeroSystems reported second quarter 2016 financial results driven by strong operating performance of mature programs. Spirit’s second quarter 2016 revenue was US$1.8bn, up 8% compared to the same period of 2015, primarily driven by higher production deliveries on the A350 XWB and A320 programs, one-time claim settlements, and higher Global Customer Support and Services activity. During the quarter, Spirit concluded long-standing negotiations with Airbus and reached a comprehensive agreement on the A350 XWB program. As a result of the agreement, Spirit extended the block to 800 shipsets and recorded an additional net forward-loss of US$135.7m in the second quarter. Operating income for the second quarter of 2016 was US$83m compared to US$230m in the second quarter of 2015, reflecting the impact of the charge associated with the Airbus settlement and other one-time items (former CEO retirement costs and debt refinancing charges). Spirit’s backlog at the end of the second quarter of 2016 was approximately US$47bn, with work packages on all platforms in the Boeing and Airbus backlog of approximately 12,500 aircraft.