financetom
Business
financetom
/
Business
/
Spirit Aero burns more cash as 737 output drops
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Spirit Aero burns more cash as 737 output drops
May 7, 2024 4:58 AM

(Reuters) -Spirit AeroSystems ( SPR ) reported a higher first-quarter cash burn on Tuesday, squeezed by lower 737 production at the aerospace supplier's biggest customer, Boeing ( BA ).

Cash burn was $444 million for the three months ended March 28, compared with $69 million a year earlier, the Wichita, Kansas-based company said.

Shares of the beleaguered supplier fell 4% before the bell.

The Federal Aviation Administration's (FAA) ramped up quality checks have pushed 737 MAX production much below the 38 per month cap the regulator had imposed, Reuters reported last month.

The restriction followed a Jan. 5 mid-air door plug blowout on a 737 MAX 9 jet, the fuselage for which was made by Spirit Aero.

Compounding Spirit's cost concerns, the planemaker has clamped down on traveled work - a practice of completing work on a production line out of the ordinary sequence - and has said it would take only fuselages that are adhere to quality standards.

Spirit has not reported an annual profit since 2020 following two fatal 737 MAX crashes and the pandemic-induced slump in travel that hit other Boeing ( BA ) suppliers.

The company makes of 70% of the 737 jet, Boeing's ( BA ) cash cow. Sales to the U.S. planemaker accounted for 64% of Spirit's revenues last year.

Meanwhile, Boeing's ( BA ) talks to acquire the company has hit a hurdle after Spirit Aero customer Airbus has called for financial compensation to take on the money-losing operations, Reuters reported last week.

Shares of Spirit have gained 3.9% this year, while those of Boeing ( BA ) have fallen 31.6%.

(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Sriraj Kalluvila)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Barrick Gold's Q1 Adjusted Net Earnings, Revenue Rise
Barrick Gold's Q1 Adjusted Net Earnings, Revenue Rise
May 1, 2024
06:54 AM EDT, 05/01/2024 (MT Newswires) -- Barrick Gold (GOLD) reported Q1 adjusted net earnings Wednesday of $0.19 per diluted share, up from $0.14 a year earlier. Analysts polled by Capital IQ expected $0.15. Revenue for the quarter ended March 31 was $2.75 billion, up from $2.64 billion a year earlier. Four analysts surveyed by Capital IQ expected $2.74 billion....
GSK Q1 Core Earnings, Revenue Advance; 2024 Outlook Lifted -- Shares Up Pre-Bell
GSK Q1 Core Earnings, Revenue Advance; 2024 Outlook Lifted -- Shares Up Pre-Bell
May 1, 2024
06:54 AM EDT, 05/01/2024 (MT Newswires) -- GSK (GSK) reported Q1 core earnings Wednesday of 0.431 British pounds ($0.54) per share, up from 0.37 pounds a year earlier. Analysts polled by Capital IQ expected 0.37 pounds. Turnover for the quarter ended March 31 was 7.36 billion pounds, up from 6.95 billion pounds a year earlier. Analysts surveyed by Capital IQ...
Pfizer lifts 2024 profit view on cost cuts, higher COVID vaccine demand
Pfizer lifts 2024 profit view on cost cuts, higher COVID vaccine demand
May 1, 2024
(Reuters) -Pfizer ( PFE ) lifted its annual profit forecast on Wednesday, banking on cost cuts and better-than-expected demand for its COVID antiviral treatment and vaccine. The U.S. drugmaker's shares rose nearly 3% before the bell after the company said it expects adjusted earnings per share of $2.15 to $2.35 in 2024 compared with a prior forecast of $2.05 to...
Entegris' Fiscal Q1 Adjusted Earnings Rise While Net Sales Drop; Fiscal Q2 Outlook Set
Entegris' Fiscal Q1 Adjusted Earnings Rise While Net Sales Drop; Fiscal Q2 Outlook Set
May 1, 2024
06:48 AM EDT, 05/01/2024 (MT Newswires) -- Entegris ( ENTG ) reported fiscal Q1 non-GAAP earnings Wednesday of $0.68 per diluted share, up from $0.65 a year earlier. Analysts polled by Capital IQ expected $0.62. Net sales for the quarter ended March 30 was $771 million, down from $922.4 million a year earlier. Analysts surveyed by Capital IQ expected $771.6...
Copyright 2023-2026 - www.financetom.com All Rights Reserved