Latest news with #JoeBuccino
BBC News
2 days ago
- Business
- BBC News
Boeing set to take over some Spirit operations in Belfast
US plane manufacturer Boeing looks set to take over part of Spirit's Belfast operation as no other buyer has yet been development was first reported by the Financial Times which suggested talks to find a potential other buyer had not AeroSystems is Northern Ireland's most significant manufacturing employer, with about 3,500 April, Airbus finalised a deal to take over another part of the Spirit operation in Belfast. Spirit business break-up The deal was first announced in July last year as part of a wider break-up of the Spirit that time, it was announced that the non-Airbus part of the operation would transfer to Boeing unless a third-party buyer was found before closing the had raised concerns over any break up of the Belfast operations saying it should "remain as one identity".Spirit spokesman Joe Buccino said the A220 wing and A350 engineering programmes were expected to transfer to added that if a suitable third-party buyer was not secured for the remainder of the Belfast site, the A220 mid-fuselage program would transfer to Buccino confirmed no suitable third-party buyer had been secured for the remaining Belfast operations to date, and it was "expected" to transfer to is not yet clear what impact if any this will have on workforce numbers, but it is understood the company met unions on Tuesday. The Unite trade union said their priority was "making sure jobs, pay and conditions are secure" for their members and the investment needed for developing their skills base is delivered. Regional secretary at Unite Susan Fitzgerald said they would be following up with Boeing "to ensure any next steps are in the interest of workers and the future of Northern Ireland's aerospace sector". Who is taking over Spirit AeroSystems Belfast? In Belfast, Airbus will take ownership of the A220 wing manufacturing and assembly A220 mid-fuselage work package will also transfer to Airbus if a buyer for the remainder of the Belfast site is not found prior to closing of the deal later this Airbus spokesperson said: "No such agreement has yet been reached and closing the transaction is now business critical for all parties."Our immediate priority is to welcome the transferring employees into the Airbus family and stabilise production."The part of the business that will transfer to Boeing, or could be divested to a third-party by Spirit, mostly involves work on a range of Bombardier business wider global business is being carved up between Boeing and Airbus, the world's largest aircraft was founded in 2005 when part of Boeing's business was spun off as a separate break-up deal was initiated by Boeing which wants to bring Spirit back in house as part of its efforts to tackle manufacturing problems.A Boeing spokesperson said taking ownership of some production in Belfast was a possible outcome they have known for "some time" and they will "warmly welcome Shorts Brothers Belfast to the Boeing family".
Time of India
2 days ago
- Business
- Time of India
Boeing set to acquire Spirit's Northern Ireland plant, Infra News, ET Infra
Advt Boeing is set to take over the non-Airbus portion of Spirit AeroSystems ' operations in Belfast, Northern Ireland, after attempts to find a buyer for the site fell through, a Spirit spokesperson said on April, European planemaker Airbus finalized a deal to acquire several Spirit AeroSystems facilities tied to its aircraft the terms of the agreement Spirit reached with Airbus, the engineering programs for the A220 wing and A350 engineering program are expected to transfer to the European planemaker, Spirit Aero spokesperson Joe Buccino told Reuters."If a suitable third-party buyer is not secured for the remainder of the Belfast site, the A220 mid-fuselage program transfers to Airbus, with the remaining Belfast operations transferring to Boeing."Last year, Boeing agreed to buy back Spirit in a $4.7 billion all-stock deal, aiming to streamline its operations and improving quality control , years after spinning off the key no buyer secured for the remaining Belfast operations, the facility is now expected to be transferred to Boeing, Buccino said.A Boeing spokesperson told Reuters that the company "remains committed to its acquisition of Spirit AeroSystems" and that "taking ownership of Belfast is an outcome we've known was a possibility for some time."The site also produces aerostructures components for Bombardier business jets. The Canadian planemaker is "very actively engaged with all parties to ensure continuity and quality," company spokesperson Mark Masluch told Reuters."We remain open to all solutions regarding the site's future," Masluch added, not fully ruling out a potential acquisition.
Reuters
3 days ago
- Business
- Reuters
Boeing set to acquire Spirit's Northern Ireland plant, spokesperson says
July 1 (Reuters) - Boeing (BA.N), opens new tab is set to take over the non-Airbus portion of Spirit AeroSystems' (SPR.N), opens new tab operations in Belfast, Northern Ireland, after attempts to find a buyer for the site fell through, a Spirit spokesperson said on Tuesday. In April, European planemaker Airbus ( opens new tab finalized a deal to acquire several Spirit AeroSystems facilities tied to its aircraft programs. Under the terms of the agreement Spirit reached with Airbus, the engineering programs for the A220 wing and A350 engineering program are expected to transfer to the European planemaker, Spirit Aero spokesperson Joe Buccino told Reuters. "If a suitable third-party buyer is not secured for the remainder of the Belfast site, the A220 mid-fuselage program transfers to Airbus, with the remaining Belfast operations transferring to Boeing." Last year, Boeing agreed to buy back Spirit in a $4.7 billion all-stock deal, aiming to streamline its operations and improving quality control, years after spinning off the key supplier. With no buyer secured for the remaining Belfast operations, the facility is now expected to be transferred to Boeing, Buccino said. A Boeing spokesperson told Reuters that the company "remains committed to its acquisition of Spirit AeroSystems" and that "taking ownership of Belfast is an outcome we've known was a possibility for some time." The site also produces aerostructures components for Bombardier ( opens new tab business jets. The Canadian planemaker is "very actively engaged with all parties to ensure continuity and quality," company spokesperson Mark Masluch told Reuters. "We remain open to all solutions regarding the site's future," Masluch added, not fully ruling out a potential acquisition. The news was first reported by the Financial Times earlier in the day.
Yahoo
09-05-2025
- Business
- Yahoo
Spirit AeroSystems to lay off workers due to backlog
WICHITA, Kan. (KSNW) – Spirit Aerosystems reported a loss of $612.9 million on Thursday in its first quarter of 2025. The company also said on Friday it will be temporarily laying off 250-350 workers, beginning May 12. The Wichita-based company reported a loss of $5.21 per share. Losses, adjusted for non-recurring costs, were $4.25 per share. The aircraft parts maker posted revenue of $1.52 billion in the period. Spirit said the loss was due to lower production on most Boeing programs, particularly the Boeing 737 program. Spirit's backlog at the end of the first quarter of 2025 was approximately $48 billion. 'We overproduced and accumulated a parts surplus over the last several years. We must reduce and pause productions and implement layoffs,' Joe Buccino, senior director of media relations, said. The layoffs are limited to the 737 fabrication and composite lines. Buccino says employees have been notified and provided information on resources available during the temporary layoffs. The company employs 20,000 people in Wichita. A financial analyst with The Teal Group, Bruce McClelland, said, Boeing is controlling the purse strings on decisions as we move even closer to the expected merger with Spirit AeroSystems this summer. He said more growing pains could be coming soon. 'There's going to be other pain from all the restructuring that has not been fully revealed yet,' said McClelland. He said Spirit AeroSystems now has a part surplus from parts produced and accumulated over the past several years. That, combined with a nearly two-month-long strike at Boeing last year, where production was significantly lower. 'Having people around, sitting around, doing nothing, probably cost the company money. So I could see how sensibly they could say, Well, we don't need people to make these parts right now, while we burn through our inventory,' said McClelland. Spirit AeroSystems spokesperson Joe Buccino said they are focused on the long-term outlook but do not believe these temporary layoffs will last past the middle of June. 'We understand the uncertainty this causes; it's unfortunate. We're committed to working through this situation quickly and returning everyone to work,' said Buccino. McClelland said, with many skilled employees retiring or leaving the workforce, 737 production has been in the low 30s per month, instead of the FAA cap of 38. He believes the temporary layoffs could scare away high-quality candidates from returning to work. 'It's part of the gamble you take; you hope there will be enough people around to keep doing this work when you need them; it's not always guaranteed,' said McClelland. McClelland said there is also a culture overhaul happening here, moving from cash flow and deliveries to safety and quality. For more Kansas news, click here. Keep up with the latest breaking news by downloading our mobile app and signing up for our news email alerts. Sign up for our Storm Track 3 Weather app by clicking here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
Major Boeing supplier Spirit AeroSystems has 'substantial doubt' continuing
May 2 (UPI) -- Spirit AeroSystems said there is "substantial doubt about the company's ability to continue as a going concern" though Boeing and Airbus are planning to acquire portions of the parts maker. The company, based in Wichita, Kan., on Friday announced the furlough of 250-350 employees starting on May 12 for one month because of a backlog of parts for two Boeing 737 programs at the Kansas plant, The Wichita Eagle reported. Spirit spun off from Boeing in 2005 but has been finalizing an agreement with Boeing to be reacquired since July 2024. Also, Boeing's rival Airbus, headquartered in France, on Thursday agreed to provide the company $200 million in credit until it takes over the operation of work on its planes. About 70% of Spirit's business in 2023 came from Boeing. Spirit Aerospace has factories in other U.S. cities, as well as Britain, France, Malaysia and Morocco. The company made a quarterly filing with the Securities and Exchange Commission on Tuesday detailing a grim financial picture. "The Company will require additional liquidity to continue its operations over the next 12 months," Spirit reported. The company reported a net loss of $1.51 billion from January to September 2024. Spirit AeroSystems had a loss of $616.2 million in 2023, $545.7 million in 2022 and $540.8 million in 2021. As of Sept. 26, its debt balance was $4.4 billion, including $426.2 million of debt classified as short-term, and its cash and cash equivalents were $217.6 million. For nine months, net revenue was $4.7 billion compared with $4.2 billion for the same period in 2023. In October, Spirit furloughed about 700 employees who work on the Boeing 767 and 777 programs because of slower delivery of Boeing's 737 Max aircraft amid Boeing machinists' strike. After the machinists accepted Boeing's contract offer, Spirit announced the furlough would end Nov. 18. To improve its situation, the company is issuing securities or debt financing subject to any contract conditions, and restructuring operations to increase efficiency and decrease costs. "We retain a range of options and levers to address our financial and spacing constraints and are working with our customers on these matters," Joe Buccino, Spirit Aerospace spokesperson, told KSN-TV. Besides the strike, Spirit Aerospace blamed higher levels of inventory and contract assets, lower operational cash flows because of fewer deliveries to Boeing, higher factory costs to maintain rate readiness and increases on Boeing's rising production rates. Aircraft deliveries have slowed after Boeing implemented stricter inspections to deal with the fallout of a door panel blowout on an Alaska Airlines plane in January 2024. The Wichita plant was founded as Stearman Aircraft in 1927 before being acquired by the United Aircraft and Transport Corporation in 1929. Boeing acquired it in 1941. Spirit formed as Mid-Western Aircraft when Boeing sold its operations in Wichita and two other U.S. locations to the investment firm Onex in June 2005. It was renamed Spirit Aerospace a few months later. Sign in to access your portfolio
