Spirit revenue up, net income down

Spirit AeroSystems' first quarter revenue rose slightly from a year ago, although net income declined by 38 percent.

Its performance missed analyst expectations.

First quarter revenue totaled $1.05 billion, up 1 percent from $1.04 billion a year ago. Net income totaled $35 million, down from $56 million in the same time a year ago.

"Our core businesses continue to perform well and the market for large commercial airplanes remains strong," Spirit CEO Jeff Turner said in a statement.

Spirit took a $28 million pre-tax charge on the CH-53K helicopter program, which moved the program into a loss position, the company said.

The company attempted to adapt some of its commercial manufacturing practices into the military product, an attempt that was unsuccessful, Turner said.

"While the additional cost growth on the CH-53K program is disappointing, getting it right for the future is our focus," Turner said. "Our approach was to adapt some of our commercial manufacturing practices to this military product and to date, we have been unsuccessful."

Spirit also higher research and development expense associated with the development of the Boeing 787-9 Dreamliner during the quarter.

The company's revenue guidance for 2011 remains unchanged at between $4.5 billion and $4.7 billion.

RBC Capital Markets analyst Robert Stallard called Spirit's lower-than-expected results a "deja vu given (Spirit's) history of negative surprises in prior quarters. Inconsistent execution and the lack of cash flow will likely remain headwinds for the company as the 787 program moves into production and other aerospace platforms ramp up in the current upcycle."