Spirit AeroSystems said on Wednesday, November 1, 2023, that it would burn more cash than expected in 2023 because it had cut back on deliveries of 737 fuselages. However, the company’s new CEO said that getting the troubled aerospace provider back to positive cash flow will be his “principal goal.”
It was revealed that Spirit AeroSystems is working to renegotiate money-losing supply contracts with Airbus and to refinance more than $1 billion in debt coming due in 2025.
Spirit AeroSystems seeks to renegotiate contracts with Airbus as losses pile up: Spirit AeroSystems is working to renegotiate money-losing supply contracts with Airbus and to refinance more than $1 billion in debt coming due in 2025, efforts executives describe as requiring u … pic.twitter.com/bQOaRqbbLP
— FlightGlobal (@FlightGlobal) November 1, 2023
In this post, you will read all the information related to Spirit AeroSystems’ loss, revenue and other topics.
Spirit AeroSystems Loss
Spirit AeroSystems lost $204 million in the third quarter because of higher costs for workers and the supply chain, as well as the need to rework many Boeing 737 MAX fuselages which was expensive.
Spirit AeroSystems Revenue
Spirit’s revenue in the third quarter of 2023 was $1.4 billion, which was 13% more than the same time in 2022. This rise was mostly because more products were delivered on most commercial projects and defense, space and aftermarket sales went up.
Overall exports went up from 316 shipsets in the third quarter of 2022 to 332 shipsets in the third quarter of 2023. This includes the delivery of 83 Boeing 737 shipsets, up from 69 shipsets during the same time last year.
At the end of the third quarter of 2023, Spirit had about $42.2 billion worth of work in its backlog. This included work packages on all commercial systems in the Airbus and Boeing backlogs.
Spirit AeroSystems Earnings
In the third quarter of 2023, income was $7.3 million, while in the same quarter of 2022, other expenses were $42.1 million. The difference was mostly because of lower pension income in the third quarter of 2023 and non-cash pre-tax charges of $72.6 million in the third quarter of 2022 due to the end of Pension Value Plan A.
Spirit AeroSystems Cash
In the third quarter of 2023, $111 million was spent on operations. In the same quarter of 2022, $36 million was spent on operations. Cash used for operations in the third quarter of 2023 had a bigger effect on working capital than expected, but the $50 million customer cash advance received during the period partly made up for it.
In the third quarter of 2023, free cash flow was used for $136 million, up from $73 million in the same quarter of 2022. $374 million was in cash on hand at the end of the third quarter of 2023.
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Spirit AeroSystems Financial Outlook
Cash used for activities is expected to be between $150 million and $200 million for the whole year of 2023. Free cash flow is expected to be between $275 million and $325 million for the whole year. This prediction is based on lower expected arrivals of 345 to 360 Boeing 737s for the year.
You can read their report in a tweet we provided below:
Spirit AeroSystems reports third quarter 2023 results: https://t.co/8jhX3GbUr3
Listen to the #earnings call at 10 a.m. CT: https://t.co/FByLoABf5v pic.twitter.com/G4uPB6r8vg
— Spirit AeroSystems (@SpiritAero) November 1, 2023
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