Print This Article The Wichita Eagle Back to web version
Monday, April 21, 2014

Spirit’s profits for 1st quarter soar

By Molly McMillin
The Wichita Eagle

Spirit AeroSystems recorded a 21 percent increase in revenue and 113 percent increase in net income in the first quarter as deliveries rose.

The company reported $1.27 billion of revenue in the first quarter, up from $1.05 billion for the same period a year ago.

Net income totaled $74 million, up from $35 million a year ago, the company reported Thursday.

Spirit’s backlog at the end of the first quarter rose 4 percent to $33 billion as orders exceeded deliveries.

“Spirit’s first quarter results reflect the increase in demand for our core products and the benefits of our ongoing commitment to productivity and efficiency across the company,” Jeff Turner, Spirit’s CEO and president, said in a statement.

The company is assessing the financial impact of the damage caused by an EF3 tornado that hit facilities April 14. It expects to provide an update to its financial outlook when it releases its second-quarter earnings report in July.

Margins during the quarter were better than expected, analysts said.

“We believe (Spirit) is turning the corner as development programs transition into production,” Peter Arment, an analyst with Sterne Agee, said in a note to clients.

Analysts surveyed by FactSet had been expecting a profit of 50 cents per share on revenue of $1.26 billion.

Spirit delivered sections for 303 planes during the quarter, including 146 for Boeing and 145 for Airbus. That was up from 261 during the same period last year, which included 124 for Boeing and 127 for Airbus.

Spirit makes the front section of Boeing’s new 787, and it said it delivered eight of those during the quarter. It also delivered the first center fuselage section for the new Airbus A350 XWB during the quarter. Spirit said it got a $150 million advance for A350 work. If not for that advanced, it would have used $138 million of cash during the quarter.

Spirit shares rose 22 cents to $25.52 in morning trading.

Contributing: Associated Press

Reach Molly McMillin at 316-269-6708 or mmcmillin@wichitaeagle.com.

© 2012 Wichita Eagle and wire service sources. All Rights Reserved. http://www.kansas.com