Spirit Aero to get early payments from Boeing
NEW YORK (Reuters) - Spirit AeroSystems Holdings Inc (SPR.N: Quote, Profile, Research), a former Boeing (BA.N: Quote, Profile, Research) unit which is making key fuselage parts for Boeing's new 787 Dreamliner, said on Wednesday it would get early payments from Boeing for parts delivered on the delayed 787 program.
Spirit, like other main suppliers on the 787, was supposed to be paid when Boeing started deliveries of the plane to airlines. That was originally planned for May 2008 but has now been put back to the third quarter of 2009, due to problems assembling the plane.
Boeing has been in talks with a number of its suppliers over how to bridge the long gap between delivering equipment to Boeing and being paid for the work, which threatens to become a problem for some suppliers.
Under a revised payment plan, Spirit said Boeing would provide cash advance payments to Spirit in 2008 for work delivered to Boeing under the original schedule, even though no 787s will be delivered this year.
Spirit said Boeing had already made a cash payment of $124 million to Spirit for work on the 787, which it said would be reflected in its first-quarter 2008 results.
Spirit shares rose $2.96, or 12.9 percent, to $25.90 on the New York Stock Exchange.
(Reporting by Bill Rigby)
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