Spirit AeroSystems has reported revenue of US$7.9 billion in 2019. Revenue was US$2.0 billion in Q4, up from the same period of 2018, driven by higher production volumes on the Boeing 737, 787 and Airbus A350 programs, the company said. However, operating income for the fourth quarter of 2019 was US$96 million, down compared to US$244 million in the same period of 2018, due to issues with the Boeing 737 program.
Operating income for the full year was US$761 million, down compared to US$843 million in 2018, the company said.
‘The grounding of the 737 MAX was a significant issue for Spirit in 2019, particularly after Boeing suspended production on December 16, 2019,’ said CEO Tom Gentile. ‘After Boeing directed Spirit to suspend deliveries on December 19th, we took several actions to lower costs and preserve liquidity. We implemented a workforce reduction of 2,800 employees in Wichita and 400 employees in Oklahoma. We also negotiated an amendment to our credit facility providing for covenant relief into 2021 and secured a US$375 million short-term delayed draw term loan facility. With these actions, we believe our liquidity position remains sufficient.’
The company’s Fuselage Systems segment revenue in Q4 2019 increased 2% from the same period last year to US$1.0 billion, while Propulsion Systems’ revenue in Q4 2019 increased 20% from the same period last year to US$532 million. Wing Systems segment revenue in the fourth quarter of 2019 increased 4% from the same period last year to US$391 million, primarily due to higher production volumes on the Boeing 787 and Airbus A350 programs.
This story uses material from Spirit AeroSystems, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
