50 SKY SHADES - World aviation news

Spirit Aero's quarterly revenue hurt by lower deliveries to Boeing

Download: Printable PDF Date: 01 Feb 2017 12:13 categories:
Publisher:
Spirit Aero's quarterly revenue hurt by lower deliveries to Boeing - Finance publisher
Krista Kuznecova
Country: United States Aircraft: Airplanes
Source: Reuters

Aircraft parts maker Spirit AeroSystems Holdings Inc reported a lower-than-expected quarterly revenue on Wednesday as its biggest customer, Boeing Co, faces slowing demand for jetliners.

Spirit's shares were down 4.59 percent to $57.30 in morning trading.

Quarterly revenue was hurt by lower "pricing terms" for Boeing's 787 program and fewer production deliveries on the 747 and 777 programs, Spirit said in a statement.

Boeing, which accounts for 84 percent of Spirit's revenue, cut production of its cash cow 777 jetliner by 40 percent this year as it focuses on newer models.

Spirit Aero also forecast 2017 profit and revenue below analysts' estimates.

The company said it expected full-year earnings of $4.60-$4.85 per share and revenue of $6.8 billion-$6.9 billion.

Analysts on average were expecting 2017 earnings of $4.86 per share and revenue of $6.92 billion, according to Thomson Reuters I/B/E/S.

Revenue for the quarter fell 2.4 percent to $1.57 billion, missing analysts' estimate of $1.60 billion.

Net income fell to $108.2 million, or 89 cents per share, in the fourth quarter ended Dec. 31 from $138.3 million, or $1.01 per share, a year earlier.

The company said its net income included a charge of 14 cents per share related to severe weather event and voluntary retirement program.

Analysts on average had expected earnings of $1.03 per share.

Up to Tuesday's close, Spirit shares had risen 2.9 percent this year, compared with a 0.5 percent increase in the Dow Jones U.S. aerospace and defense index .DJUSAE.



Loading comments for Spirit Aero's quarterly revenue hurt by lower deliveries to Boeing...


Recommended

Boeing, machinists face off over union at South Carolina plant

Boeing Co faces its first union vote on Wednesday at its aircraft factory in South Carolina, a high-profile test for organized labor in the nation's most strongly anti-union state. Th...

Boeing, Juneyao Airlines Finalize Order for Five 787-9 Dreamliners

Boeing and Juneyao Airlines announced the finalization of an order for five 787-9 Dreamliners, valued at about $1.32 billion at current list prices. This new order, which a...

Irkut Corporation expands Su-30MKI Program

Irkut Corporation (a member of UAC) participates in AERO INDIA 2017 Air Show (Bangalore, 14-18 February). The corporate products are represented in models of Su-30MKI, Yak-130, MC-21, and Yak-152 airc...

Pratt & Whitney Expanding Business in Columbus, Georgia, to Meet Increased Demand

Pratt & Whitney, a division of United Technologies Corp.,announced that it will invest approximately $386 million in its Columbus, Georgia, facility to increase the production of parts and ma...

Gulfstream to showcase three aircraft at Avalon 2017

Gulfstream Aerospace Corp. will showcase three of its business jets at the Australian International Aerospace & Defense Exposition at Avalon Airport from Feb. 28-March 5 in Geelong, Victoria. The...

Iconic London Biggin Hill Airport celebrates 100th anniversary

It was on 13th February 1917 that the War Office first established a military camp on the site at Biggin Hill in South London that is the origin of the airport. The Biggin Hill...