Spirit AeroSystems Holdings (Spirit), headquartered in Wichita, Kansas, USA, and one of the world's largest non-OEM designers and manufacturers of aerostructures for commercial and defense aircraft has released its financial results for the third quarter of 2018.
Commenting on the results, the Company President and CEO, Tom Gentile, confirmed that: “A full schedule recovery and subsequent cost reduction of the 737 line has been a primary focus while sustaining execution across all programs. We made great progress continuing to improve the consistency and efficiency of 737 deliveries during the quarter and are now fully recovered to our delivery schedule. All other programs, including the [Airbus] A320 and the A350, are on schedule. We are also on track to increase rates to 57 airplanes per month on [the Boeing] 737 and 14 airplanes per month on the 787, both of which occur next year.”
Revenue: Spirit's third quarter 2018 revenue was US$1.8 billion, up from the same period in 2017, primarily driven by higher production deliveries on the Boeing 737 program and increased defense-related activity. Spirit's backlog at the end of the third quarter of 2018 was approximately US$48 billion,
Operating income for the third quarter of 2018 was US$223 million, up compared to US$202 million in the same period of 2017. This increase was primarily due to the recovery of legal fees related to a recent court decision as well as margin recognized on the Airbus A350 program as a result of the adoption of ASC 606.
Third quarter EPS was US$1.59, up compared to US$1.26 in the same period of 2017. Third quarter adjusted EPS was US$1.70, excluding the impact of the proposed Asco acquisition and debt financing costs, compared to US$1.26 in the same period of 2017.
Cash from operations in the third quarter of 2018 was US$170 million, compared to US$291 million in the same quarter last year. Adjusted free cash flow in the third quarter of 2018 was US$130 million, compared to US$240 million in the same quarter last year.
Cash balance at the end of the quarter was US$683 million. The company's revolving credit facility remained undrawn at the end of the quarter.
Spirit delivered 431 Boeing, Airbus and business/regional shipsets in total for the third quarter 2018, compared to 404 for the same period in 2017.
