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Wednesday, July 29, 2015

Spirit AeroSystems Sees Revenue Drop, Gears up for Rate Increases

Juliet Van Wagenen

Spirit Aerosystems Boeing 737 airframes in a facility
Spirit Aerosystems Boeing 737 airframes in a facility. Photo: Spirit Aerosystems
[Avionics Today 07-29-2015] Spirit AeroSystems reported second quarter financial results driven by positive operating performance of mature programs. Spirit's second quarter 2015 revenues were $1.7 billion, down 6 percent compared to the same period of 2014 primarily due to the Gulfstream wing divestiture and lower revenues recognized on the Boeing 787 Dreamliner program.
 
Operating income was $230 million, up from $216 million for the same period in 2014. Net income for the quarter was $155 million compared to net income of $143 million in the same period of 2014. 
 
"Preparing for aircraft rate increases is a key focus for us this year. Near term, we are capitalizing to increase the production rate of the 787 to 12 shipsets per month and the 737 to 47 shipsets per month, as well as the higher production rates on the A320 and A350 programs,” said Spirit AeroSystems’ President and CEO Larry Lawson. 
 
Spirit's backlog increased to $47 billion at the end of the second quarter driven by continued strong commercial aerospace demand. Spirit revenue guidance for the full-year 2015 remains unchanged and is expected to be between $6.6 billion and $6.7 billion. 
 
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