02 November 2013

Spirit AeroSystems only delivers 4 shipsets in the first 9 months of 2013. Without reaching the rate of 1 aircraft per month, it could become the bottle neck for the A350-900 ramp up.

In the 3rd Quarter 2013 Financial Results reported by Spirit AeroSystems there are some key data concerning the A350 XWB Program. While Spirit has reported revenues of $1.504 Billion, they include also $124 Million in New Program Charges, primarily on the A350 XWB program.

Spirit AeroSystems reported third quarter 2013 financial results reflecting continued strong demand for large commercial aircraft, solid mature program operating performance, and the impact of new program charges. Spirit’s third quarter 2013 revenues were $1.504 billion, up 10 percent from $1.365 billion for the same period of 2012, driven by higher production volumes.

“We are making progress but there is more work to be done. In the fourth quarter, we will have concluded our strategic and financial review and we will provide 2014 financial guidance with our fourth quarter and full-year 2013 earnings report,” said President and Chief Executive Officer Larry Lawson.

“We had a productive quarter as we reduced costs and remained on track for our rate increases. Spirit’s strong third quarter performance across the mature programs demonstrates the predictable and consistent earnings and cash flow capability of this business. While we’ve made significant investments on next generation twin aisle aircraft, these programs position Spirit on the products which drive the long-term growth trends in this market segment,” Lawson continued.

“Looking forward, given our capability and affordability, we see continued growth opportunities in the large commercial aircraft and defense market segments as both commercial and defense OEMs seek the capable, cost-effective engineering and manufacturing capabilities that Spirit brings to the market,” Lawson concluded.

In the third quarter of 2013 the Fuselage Systems segment recorded net pre-tax forward losses of $112 million on the A350 XWB fuselage program which consists of $79 million on the A350 XWB recurring fuselage program reflecting early development discovery and changes and associated production inefficiencies, and higher test and transportation costs across the buy and $33 million on the A350 XWB non-recurring fuselage program driven by engineering efforts on the -1000 derivative.

The company’s credit rating remained unchanged at the end of the third quarter 2013 with a Ba2, negative outlook by Moody’s Investor Services and a BB, negative outlook by Standard and Poor’s.

But Deliveries figures state that in 2013 Spirit only has delivered 4 shipsets. Considering the 3 shipsets delivered last year, it seems that Spirit has delays and difficulties for the ramp up. It could become the bottle neck for the A350-900 Program ramp up.

Based on the “Spirit AeroSystems Holdings, Inc. Reports 3rd Quarter 2013 Financial Results”

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