Aerospace composites company Spirit AeroSystems has reported Q1 revenues of US$2.0 billion, up 13% from the same period of last year.
This increase was primarily driven by higher production volumes on the Boeing 737 and 787 programs, favorable model mix on the Boeing 737 program and higher revenue recognized on the Boeing 787 program, the company said.
The Fuselage Systems segment’s revenue in Q1 2019 increased by 11% from the same period last year to US$1.1 billion, while Propulsion Systems segment revenue increased 23% from the same period last year to US$486 million. Wing Systems’ revenue increased 8% from the same period last year to US$408 million, primarily due to higher production volume on the Boeing 737, 777 and 787 programs as well as higher wing deliveries on the Airbus A350 program.
‘Previously, we had planned to increase production to 57 aircraft per month on the Boeing 737 program beginning in approximately June 2019,’ said Tom Gentile, president and CEO. ‘Now, we will be maintaining production at our current rate of 52 aircraft per month. With this schedule, we will produce fewer 737 MAX aircraft this year than we previously forecasted, by five units per month beginning in June, for as long as we remain at a production rate of 52 aircraft per month.
‘Given the reduction in production units and corresponding revenue, we have begun taking immediate actions to reduce expenses, defer capital investments, and redouble our efforts on working capital improvements to mitigate the financial impact of the production rate change. After spending US$75 million in the first quarter on share repurchases, we will pause our share repurchases pending further clarity surrounding the 737 MAX.’
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.
