Spirit AeroSystems profit misses on loss tied to Boeing 787
Aerospace company has cut jobs and reduced its dividend by 90%
Boeing supplier Spirit AeroSystems reported a lower-than-expected quarterly profit, as it booked a loss related to the 787 Dreamliner program, and said it would not provide a 2020 outlook until the 737 MAX jet is cleared to fly again.
Spirit said it realized a loss of about $34 million in the fourth quarter as Boeing is set to lower the production of its larger and more profitable 787 wide-body aircraft to 10 jets per month in 2021 from 14 currently.
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Boeing was forced to announce the production cut amid a drought of orders from China
787-8 Dreamliner (Copyright: Boeing)
Spirit's sales have also been hit as Boeing has halted the production of its once best-selling 737 MAX, which was grounded in March following two deadly crashes.
As a result, Spirit has cut jobs and reduced its quarterly dividend by 90% to just 1 cent per share.
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Spirit's net income fell to $68 million, or 65 cents per share, in the fourth quarter ended Dec. 31 from $178 million, or $1.68 per share, a year earlier.
On an adjusted basis, Spirit earned 79 cents per share, well below analysts' average expectation of $1.65 per share, according to IBES data from Refinitiv.
Total revenue rose 6.8% to $1.96 billion.