Reuters logo
Spirit Aero posts profit as aircraft makers boost production
August 1, 2014 / 11:43 AM / 3 years ago

Spirit Aero posts profit as aircraft makers boost production

(Reuters) - Aircraft components maker Spirit AeroSystems Holdings Inc (SPR.N) posted a better-than-expected quarterly profit and raised its full-year forecast, as Boeing Co (BA.N) and Airbus (AIR.PA) boosted production to meet surging demand for planes.

Spirit Aero’s shares rose nearly 8 percent to $35 in premarket trading on Friday.

Last week, Boeing, which accounts for about 84 percent of Spirit Aero’s revenue, reported a 7 percent rise in commercial airplane deliveries in the quarter.

Airbus also reported a rise in jetliner deliveries in first six months of 2014. (bit.ly/1t5NPTj)

Spirit Aero, carved out of Boeing in 2005, raised its 2014 profit forecast to $2.90-$3.05 per share, from $2.50-$2.65. It raised its revenue forecast to $6.7-$6.9 billion, from $6.5-$6.7 billion.

Analysts on average were expecting a profit of $2.95 per share on revenue of $6.71 billion, according to Thomson Reuters I/B/E/S.

Spirit Aero said the higher plane production helped revenue in its fuselage systems business, the company’s largest, jump 24 percent to $905 million in the second quarter ended July 3.

Sales at the company’s propulsion and wing systems businesses also increased. Total revenue rose 18.6 percent to $1.80 billion.

Spirit Aero reported a net income of $143.4 million, or $1.01 per share, compared with a loss of $209.4 million, or $1.47 per share, a year earlier.

The year-earlier quarter included a charge of $448 million in cost overruns on several aircraft wing programs.

Analysts had expected earnings of 68 cents per share on revenue of $1.68 billion.

Up to Thursday’s close, the company’s shares have gained about 27 percent in the past year, compared with a 14 percent rise in the Dow Jones U.S. Aerospace and Defense index.

Reporting by Ankit Ajmera in Bangalore; Editing by Saumyadeb Chakrabarty and Savio D'Souza

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below