Spirit AeroSystems Reports Second Quarter 2020 Results

August 10 2020

Spirit AeroSystems Holdings, Inc. reported second quarter 2020 financial results.

• Directed by Boeing to produce 72 737 shipsets in 2020, an 88% reduction from 606 delivered shipsets in 2019
• Delivered 159 shipsets compared to 449 shipsets in Q2 2019 and 324 shipsets in Q1 2020
• Recorded forward losses of $194 million, primarily on the 787 and A350 programs due to greater customer production rate reductions than previously assumed
• Implemented additional cost reduction actions to reduce cash burn; aggregate cost reduction actions taken this year expected to result in annualized $1 billion savings
• Furloughed production workers and managers supporting the 737 program in Wichita, Kansas and Oklahoma from June 15 to August 15
• Declared further reduction of commercial aerospace employees by 1,100; bringing total commercial workforce reduction to ~8,000 YTD
• Decided to continue 20 percent executive pay reduction and four-day work week for salaried workforce through the remainder of the year
• Declared closure of facility in San Antonio, Texas; Continuing to evaluate additional facility closures
• Amended Credit Agreement to provide covenant relief through 2022

Spirit’s second quarter of 2020 revenue was $644.6 million, down from the same period of 2019, primarily due to the significantly lower 737 MAX production resulting from the grounding of the program and the impacts of COVID-19. Deliveries decreased to 159 shipsets during the second quarter of 2020 compared to 449 shipsets in the same period of 2019, including Boeing 737 MAX deliveries of 19 shipsets compared to 147 shipsets in the same period of the prior year.

Spirit’s backlog at the end of the second quarter of 2020 was approximately $41 billion, with work packages on all commercial platforms in the Boeing and Airbus backlog.

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