01:54 PM EDT, 05/07/2024 (MT Newswires) -- Spirit AeroSystems ( SPR ) on Tuesday logged mixed first-quarter financial results and said it won't be offering a full-year outlook as its acquisition talks with plane maker Boeing ( BA ) continue.

Spirit AeroSystems' ( SPR ) adjusted net loss widened to $3.93 a share for the quarter through March 28 from $1.69 a year earlier. Wall Street was looking for a normalized loss of $0.58. The aerospace parts maker said the quarter was negatively affected by Boeing's ( BA ) schedule changes in March, as well as the ongoing investigation and quality audits following the mid-air cabin blowout earlier this year of the Boeing 737 Max 9 operated by Alaska Air Group's ( ALK ) Alaska Airlines.

First-quarter net revenue increased 19% year over year to $1.70 billion, topping the Street's $1.62 billion view. Spirit AeroSystems ( SPR ) attributed the revenue increase mainly to higher production activities on commercial programs and increased defense and space sales. Deliveries fell to 307 shipsets in the quarter from 346 a year earlier.

Late last year, the company prepared for projected growth in 737 production rates, which it said have now been delayed. Spirit AeroSystems ( SPR ) said it expects its 737 monthly production rate to remain at the current level of about 31 aircraft through the end of the year. "Spirit's ability to align factory costs, which include both internal and supply chain related spending, and to react to sudden changes in production rates will have a material impact on results of operations and cash flows throughout 2024," the company said.

Spirit AeroSystems ( SPR ) shares were down 1.9% in Tuesday afternoon trade, while Boeing ( BA ) fell 0.7%.

"We collaborated with Boeing ( BA ) to align 737 fuselage product inspection as close as possible to where the work is performed at our factories in Wichita," Spirit AeroSystems ( SPR ) Chief Executive Pat Shanahan said in a statement. "This is a significant accomplishment that we believe will enhance quality, eliminate rework, and benefit the entire production system between our companies."

In March, Spirit AeroSystems ( SPR ) and Boeing ( BA ) confirmed they were engaged in discussions regarding the former's possible acquisition. Spirit AeroSystems ( SPR ) was previously a part of Boeing ( BA ). "Spirit will not be providing guidance until there is further clarity on the acquisition discussions with Boeing, 737 Max delivery and production timing, as well as ongoing commercial negotiations with Airbus," Spirit AeroSystems ( SPR ) said Tuesday.

Spirit said it has been unable to reach a conclusion to its pricing negotiations with Airbus. "As a result of this impact and the continued pressure on meeting the delivery targets demanded by the rapid rate in the Airbus A350 and 220 programs, we booked significant losses this quarter," Shanahan said on an earnings conference call, according to a Capital IQ transcript.

Spirit AeroSystems ( SPR ) said it received indications subsequent to the end of the first quarter that Boeing ( BA ) expects a slower increase in production and deliveries on the 787 program. Spirit AeroSystems ( SPR ) expects to incur an incremental forward loss of about $50 million to $60 million in the ongoing quarter partly due to reduced production volumes.

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