Spirit posts higher revenue and profits for first quarter
05/22/2014 6:16 AM
08/08/2014 10:23 AM
Revenue at Spirit AeroSystems rose 20 percent in the first quarter, while net income rose 89 percent, in part because of higher production rates.
The results demonstrate continued robust demand for large commercial airliners, the company said.
“Spirit’s leadership position on the best-selling airplanes in the market continues to drive our growth in a sustained commercial aerospace up cycle,” Larry Lawson, Spirit AeroSystems president and CEO, said in a statement. “Our cost discipline and focus on performance and accountability are beginning to show results.”
Spirit was successful in increasing production rates on the popular Boeing 737 commercial airplane to a record 42 a month. Spirit builds the fuselage and pylons of the 737 in Wichita.
Spirit’s first quarter 2014 revenue totaled $1.7 billion, up from $1.4 billion in the same time a year ago.
Net income totaled $154 million for the period, or $1.07 per fully diluted share, compared to net income of $81 million, or 57 cents per fully diluted share, in the same time frame in 2013.
The increase includes tax benefits from a Malaysian tax holiday and the partial release of the deferred tax valuation allowance, partially offset by the already announced debt refinancing.
Malaysia has tax incentives to encourage foreign investment. Spirit operates a manufacturing and design facility in Malaysia near Kuala Lumpur.
Spirit also made a significant step forward in the quarter by completing an agreement with Boeing on the pricing of its 737, 747, 767 and 777 programs, it said.
“The agreement represents an equitable balance between the benefit of the rate increases and the investment in our customer’s success in the competitive new and replacement airplane market,” Lawson said.
Spirit’s backlog at the end of the first quarter totaled about $41 billion.
Spirit said it expects to record revenue for 2014 of between $6.5 billion and $6.7 billion.