Latest news with #SpiritAeroSystems
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
09-05-2025
- Business
- Yahoo
China Airlines orders 14 Boeing aircraft
TAIPEI, Taiwan (KSNW) — China Airlines has placed an order with Boeing for 14 aircraft from the 777X family, including ten 777-9 passenger jets and four 777-8 freighters. The 777X program is assembled in Everett, Washington, but relies on components from Wichita, where Spirit AeroSystems produces key parts like the forward fuselage, engine nacelles, and struts. China Airlines is the first Taiwanese carrier to order the 777X, planning to use the 777-9 for long-haul routes to North America and Europe, and the 777-8 Freighter for cargo expansion. Spirit AeroSystems to lay off workers due to backlog The Boeing 777-9 is the largest twin-engine jet, carrying up to 426 passengers with a range of 7,295 nautical miles. The 777-8 Freighter offers the same payload as the 747 but with improved fuel efficiency and lower noise. In a statement, Boeing called the order an extension of their nearly six-decade partnership. 'We value China Airlines' continued confidence and look forward to delivering the new 777Xs adorned with the beautiful plum blossom livery in the coming years,' said Brad McMullen, Boeing senior vice president of Commercial Sales and Marketing. To date, more than 520 orders have been placed for the 777X series, Boeing says. 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.
Free Malaysia Today
08-05-2025
- Business
- Free Malaysia Today
Airbus to take over Spirit asset as part of Boeing reintegration
Airbus SE said the financial accord won't change its earnings outlook for this year. (AFP pic) PARIS : Airbus SE reached a final agreement to take over some assets and sites from Spirit AeroSystems Holdings Inc, clearing the way for the struggling US aerospace supplier to be acquired by its former parent, Boeing Co. The European planemaker will take over a facility in Kinston, North Carolina, for fuselage sections of the Airbus A350 model, as well as a site in France also making parts for the widebody plane. Other factories include a wing manufacturing site for the A220 in Belfast, Ireland, and a wing-component site in , Scotland, according to a statement by Spirit. Some portions of the deal are tentative, like the remainder of the Belfast site and a business in Malaysia, which Airbus will take over if no other suitable buyer is identified. Airbus will receive a payment of US$439 million from Spirit to take the assets, according to a release by Airbus. The planemaker will also provide Spirit with US$200 million of credit lines to help the struggling manufacturer support the Airbus programmes. Airbus said the financial accord won't change its earnings outlook for this year. 'With this operation, Airbus aims to ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward, both operationally and financially, for key Airbus work packages,' Airbus said. The Airbus deal is a key part of a complex three-way transaction that reunites Boeing with Spirit, an operation that the US company spun off in 2005. While Spirit has since become an important vendor to Airbus, it's still Boeing's largest single supplier. Boeing's US$4.7 billion acquisition, announced in July 2024, required Airbus to take over some operations or rely on its global rival Boeing to supply it with critical aircraft components. Spirit AeroSystems, which makes the fuselage for Boeing's 737 aircraft from its base in Wichita, has struggled financially for years. Both planemakers have provided it with hundreds of millions of dollars in funding to prop up its finances and keep parts flowing. Boeing's move to reacquire its former subsidiary was triggered by a near-catastrophic accident on January 2024 in which a fuselage built by Spirit lost a large panel during flight. That mishap led to a rolling crisis at Boeing, leading to a management shakeup, an ongoing quality makeover and federal limits on Boeing's production that are still in place. At the time of the deal's initial announcement in July 2024, Airbus said it would pay US$1 for the Spirit assets it was acquiring, and receive US$559 million in compensation. Airbus said today that the compensation amount has been adjusted to reflect revised transaction perimeters. The facilities that Airbus is taking over are crucial the European planemaker's aircraft programmes, and have struggled to keep up with Airbus's timetables to increase output. CEO Guillaume Faury said in February that issues at Spirit were putting pressure on the ramp-ups of both its A350 widebody and A220 single-aisle aircraft programmes. Spirit makes the central section panels for the A350 in Kinston, which are incorporated into the widebody's fuselage in Saint-Nazare. In Belfast, it makes advanced composite wings for the A220. The Prestwick plant builds wing leading and trailing edge elements for the A320, Airbus's top-selling jet. Airbus is keen to ramp up output of the fuel-efficient and airy A220 model that it acquired control of from Bombardier Inc for a symbolic one Canadian dollar in 2018. Under Bombardier, the programme was years late and billions over budget, and Airbus has said it wants to cut costs and turn-around the loss-making programme by building 14 units a month by 2026.
Yahoo
06-05-2025
- Business
- Yahoo
Spirit AeroSystems plans furloughs at Kansas facility
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Dive Brief: Spirit AeroSystems's first quarter net revenue dropped 11% year over year to $1.5 billion, primarily due to lower production activity on most Boeing programs, according to a May 1 earnings release. The plane component manufacturer's work on Boeing 737 aircraft was particularly impacted by the lower production levels — which is a major focus at its Wichita, Kansas, facility — due to increased costs and schedule changes implemented by the aircraft company, according to a securities filing. Following these developments, Spirit AeroSystems is furloughing between 250 and 350 employees for one month at its fuselage plant in Wichita, starting in mid-May, a spokesperson said in an email. Dive Insight: Spirit AeroSystems' Q1 deliveries increased 40% YoY, up to 429 units, according to the fuselage supplier's securities filing. The deliveries include 48 business and regional jets, as well as 145 Boeing and 236 Airbus aircraft. Deliveries for the 737 rose 189% YoY as Boeing increased production levels after it implemented extra precautions in fuselage production at the Wichita facility last year. The upcoming Wichita furloughs follow the company's previous temporary layoff announcement in October 2024, which furloughed 700 workers for 21 days. The action was driven by Boeing's 53-day workers' strike, which led to production disruptions. Spirit AeroSystems' quarterly net loss slightly improved to $613 million. The loss was partially alleviated by higher production activity on Boeing competitor Airbus' aircraft, Spirit AeroSystems' second largest customer. The fuselage supplier has been raising the flag on its finances over the past year, as it reported a $2.14 billion net loss last year, primarily due to production and delivery changes implemented by Boeing. The alarm led to cash and credit advances from its two largest customers, Boeing and Airbus, in an effort to continue operations. Spirit AeroSystems also finalized its $165 million sale of former subsidiary Fiber Materials Inc. to specialty textile manufacturer Tex-Tech in January. Deliveries for Spirit AeroSystems ' two largest customers jumped 46% YoY Spirit AeroSystems' deliveries for Boeing and Airbus in Q1 This embedded content is not available in your region. Still, Spirit AeroSystems has been assessing additional strategies that could improve funds and as of May 1, the company said it had developed a plan to improve liquidity, according to a recent securities filing.
CNBC
30-04-2025
- Business
- CNBC
Airbus beats first-quarter forecasts, maintains targets
Europe's Airbus posted stronger-than-expected revenues and core profit for the first quarter and reaffirmed targets for the year, while stressing it was too early to quantify the impact of a tariff war in which there would be "only losers.". The world's largest planemaker said widely watched adjusted operating income rose 8% to 624 million euros ($707 million) and revenues gained 6% to 13.54 billion euros in the quarter, led by defense which smoothed the impact of lower jetliner deliveries. Analysts had on average expected adjusted or underlying operating profit of 602 million euros on revenues of 12.95 billion, according to consensus data compiled by the company. Airbus also burned significantly less cash than expected. Boeing's European rival continued to project 820 aircraft deliveries for 2025, up from 766 last year, but cautioned these would once again be backloaded towards the latter part of the year as it faces supply chain problems. The company, which finalized an agreement on Monday to take over some factories of ailing Spirit AeroSystems, said the U.S. aerostructure supplier's difficulties were continuing to put pressure on the ramp-up of the Airbus A320 and A350 jets. It held its industrial forecasts for aircraft production unchanged, however, and stuck with 2025 financial forecasts that include 7.0 billion euros of adjusted operating profit - a measure routinely used by Airbus to exclude gains and losses related to restructuring, currency and certain other factors. The 2025 forecasts include the impact of absorbing part of Spirit but not the uncertainty surrounding a growing tariff war. CEO Guillaume Faury called for a swift return to a 1979 treaty between 33 nations that has ensured duty-free trading in aircraft and parts for decades. The World Trade Organization side agreement has been upended by the recent imposition of sweeping tariffs by U.S. President Donald Trump, with the European Union among those preparing counter-measures if negotiations fail to find a resolution. Airbus has not been directly hit by especially high tariffs between China and the United States despite having an assembly line near Beijing, Faury told reporters, adding that Airbus intended to maintain its existing plants in both countries. Faury said Airbus was talking to customers and suppliers but he ruled out picking up the bill for tariffs for U.S. airlines taking delivery of planes directly from Europe, rather than the company's assembly plant for some of its models in Alabama. Delta Air Lines CEO Ed Bastian said earlier this month the U.S. carrier would defer aircraft deliveries rather than pay tariffs on them. In its defense business, Airbus struck a more positive tone over future production of the A400M military airlifter, saying it was in "constructive" talks with purchasing nations. The A400M has been hit by delays, partial cancellations by European launch nations and slow exports, with the order pipeline expected to run out in 2028. But industry sources have said higher European arms spending could revive interest from buyers that have curbed deliveries, such as France and Spain. Airbus also announced new charges of 105 million euros related to the ongoing restructuring of its Defence and Space division.
