Spirit AeroSystems - fuselage supplier and soon-to-be acquired by Boeing next year - reported a net loss of $477 million, or a loss per share of $4.07, in the third quarter of 2024, widening further from its net loss of $204 million, or a $1.94 loss per share, in the same period last year.
Around 700 employees working on the 767 and 777 programmes due to the ongoing strikes at Boeing and the “significant inventory buffer on those programmes”. Spirit said the furlough will be effective October 28 and will last for 21-days.
“If the strike continues beyond November, financial pressures may require the company to implement layoffs and additional furloughs,” the company added in its earnings report.
The company's net revenues were up 2% to $1.5bn in the quarter and reported an operating loss of $350 million, more than doubling from its $134 million loss in the third quarter a year prior. Spirit's commercial segment revenues was relatively flat at a positive 0.3% to $1.14bn. Commercial also had an operating loss of $299.4 million, widening further from its $82.1 million loss a year prior - Spirit reported operating profits for its defence & space and aftermarket segments.
Spirit's backlog at the end of the third quarter was approximately $48bn, which includes work packages on commercial platforms in the Airbus and Boeing backlog.
Overall deliveries were consistent in the third quarter, Spirit said, with 332 shipsets in both the third quarters of 2024 and 2023.
Boeing confirmed in its earnings call that it would continue with the Spirit acquisition.
“We remain on track to close the acquisition by Boeing in mid-2025, while also continuing to focus on safety, compliance and quality,” said Spirit AeroSystems president and CEO Pat Shanahan.
The company's free cash flow for the period was a negative $323 million, compared to a negative $136 million a year prior.
“Our process improvement intiatives helped drive our third quarter free cash flow usage in half from the second quarter [2024], and we are demonstrating solid momentum heading into the fourth quarter,” said Spirit executive vice president and chief financial officer Irene Esteves.
The company's total debt at the end of the quarter totalled $4.4bn. As of September 26, 2024, its total assets were valued at $7bn. Total liabilities and equity were $7bn.
With the merger agreement with Boeing - coupled with the aircraft manufacturer's ongoing strike - Spirit is not providing guidance for the fourth quarter or full year outlook. Spirit did not hold a conference call for the third quarter earnings, again related to the merger agreement.