Spirit AeroSystems Q3 revenues rise 10%

Spirit's third quarter 2013 revenues were $1.504 billion, up 10 percent from $1.365 billion for the same period of 2012, driven by higher production volumes.

Spirit 3Q13 Consolidated Results – Revenue, EPS, Operating Margin, Cash Flow, Liquidity, and Backlog

- Total revenues of $1.504 billion, up 10% y/y

- Reports fully-diluted EPS of $0.65, adjusted fully-diluted EPS of $0.77

- Reports Operating Margin of 3.4%, adjusted Operating Margin of 11.3%

- Cash From Operations of $185 million, adjusted Free Cash Flow of $141 million, YTD adjusted Free Cash Flow of $51 million

- Records net pre-tax charge of ($124) million primarily on the A350 XWB program

- Cash and cash equivalents were $436 million

- Total backlog ~$38 billion

Operating income was $51 million, compared to operating loss of ($211) million for the same period in 2012. Spirit recorded pre-tax charges of approximately ($124) million, or ($0.54) per share, primarily related to new programs, partially offset by a net pre-tax $28 million, or $0.12 per share favorable cumulative catch-up adjustment due to productivity and efficiency gains on mature programs.

The third quarter of 2012 included a pre-tax ($590) million, or ($2.90) per share charge primarily related to new programs partially offset by net pre-tax benefit of $219 million, or ($1.08) per share due to the final settlement with insurers for all claims relating to the April 14, 2012 severe weather event at the Wichita, Kan., facility and a pre-tax $18 million favorable cumulative catch-up adjustment.

Net income for the current quarter was $94 million, or $0.65 per fully diluted share, compared to a net loss of ($134) million, or ($0.94) per fully diluted share, in the same period of 2012. The current quarter also includes a $57 million, or $0.40 per share, positive tax impact primarily related to net losses driven by new program charges.

Financial Outlook and Risk to Future Financial Results

On May 2, 2013, Spirit announced a comprehensive strategic and financial review of the company's development programs in Tulsa, Wichita, Kinston, and St. Nazaire and a suspension of financial guidance.  The review is scheduled to conclude in the fourth quarter of 2013. Upon the reporting of its fourth quarter and full-year 2013 results, the company intends to issue financial guidance for 2014.

The review may result in additional strategic decisions and financial impact. Factors which are the subject of, and could impact our review include those described more fully in the "Risk Factors" section of our filings with the Securities and Exchange Commission.

These factors include Spirit's ability to achieve acceptable shipset pricing with its customers including as it relates to derivative airplane model pricing on the 787-9 and 787-10, our ability to achieve anticipated productivity and cost improvement for all of our airplane programs, the risk of higher than forecast non-recurring costs on new programs, and fluctuations in demand in the market for commercial and business jet aircraft.  

Spirit AeroSystems