Spirit AeroSystems Holdings reported first quarter 2014 financial results demonstrating continued robust demand for large commercial aircraft and strong mature program operating performance. Spirit's first quarter 2014 revenues were $1.7 billion, up from $1.4 billion for the same period of 2013 on higher production volumes and four additional workdays in the quarter.
Operating income was $194 million, up from $145 million for the same period in 2013, driven by increased volume and favorable cumulative catch-up adjustments on mature programs.
Net income for the quarter was $154 million, or $1.07 per fully diluted share, compared to net income of $81 million, or $0.57 per fully diluted share, in the same period of 2013. The increase in current quarter income includes tax benefits from the Malaysian tax holiday and the partial release of the deferred tax valuation allowance, which were partially offset by the cost of the previously announced debt refinancing.
"Spirit's leadership position on the best-selling airplanes in the market continues to drive our growth in a sustained commercial aerospace up cycle," said president and chief executive officer Larry Lawson. "Our cost discipline and focus on performance and accountability are beginning to show results."
"The first quarter demonstrates Spirit's ability to perform. We were successful in accomplishing the ramp to a new all-time high rate of 42 airplanes per month on the 737," Lawson continued.
"We also made a significant step forward this quarter, validating our disciplined approach to decision-making, as we completed the memorandum of agreement with Boeing for pricing on our 737, 747, 767 and 777 programs. This agreement represents an equitable balance between the benefit of rate increases and investment in our customer's success in the competitive new and replacement airplane market."
"Looking forward, program execution and operational performance will contribute to long-term profitable growth as we continue our focus on mature program growth, investing in product innovation, and improving costs on maturing programs," Lawson continued.