This press release contains "forward-looking statements." Forward-looking statements reflect our current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "anticipate," "intend," "estimate," "believe," "project," "continue," "plan," "forecast," or other similar words. These statements reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown. Our actual results may vary materially from those anticipated in forward-looking statements. We caution investors not to place undue reliance on any forward-looking statements. Important factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to: our ability to continue to grow our business and execute our growth strategy, including the timing and execution of new programs; our ability to perform our obligations and manage cost related to our new commercial and business aircraft development programs; reduction in the build rates of certain
Boeing aircraft including, but not limited to, the B737 program, the B747 program, the B767 program and the B777 program, and build rates of the
Airbus A320 and A380 programs, which could be affected by the impact of a deep recession on business and consumer confidence and the impact of continuing turmoil in the global financial and credit markets; declining business jet manufacturing rates and customer cancellations or deferrals as a result of the weakened global economy; the success and timely execution of key milestones such as first flight and delivery of
Boeing's new B787 and
Airbus' new A350 aircraft programs, including receipt of necessary regulatory approvals and customer adherence to their announced schedules; our ability to enter into supply arrangements with additional customers and the ability of all parties to satisfy their performance requirements under existing supply contracts with Boeing, Airbus, and other customers and the risk of nonpayment by such customers; any adverse impact on Boeing's and Airbus' production of aircraft resulting from cancellations, deferrals or reduced orders by their customers or labor disputes; any adverse impact on the demand for air travel or our operations from the outbreak of diseases such as the influenza outbreak caused by the H1N1 virus, avian influenza, severe acute respiratory syndrome or other epidemic or pandemic outbreaks; returns on pension plan assets and impact of future discount rate changes on pension obligations; our ability to borrow additional funds, or refinance debt; competition from original equipment manufacturers and other aerostructures suppliers; the effect of governmental laws, such as U.S. export control laws, the Foreign Corrupt Practices Act, environmental laws and agency regulations, both in the U.S. and abroad; the cost and availability of raw materials and purchased components; our ability to successfully extend or renegotiate our primary collective bargaining contracts with our labor unions; our ability to recruit and retain highly skilled employees and our relationships with the unions representing many of our employees; spending by the U.S. and other governments on defense; the possibility that our cash flows and borrowing facilities may not be adequate for our additional capital needs or for payment of interest on and principal of our indebtedness; our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; the outcome or impact of ongoing or future litigation and regulatory actions; and our exposure to potential product liability claims. These factors are not exhaustive, and new factors may emerge or changes to the foregoing factors may occur that could impact our business. Except to the extent required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Appendix
Segment Results
Fuselage Systems
Fuselage Systems segment revenues for the third quarter of 2009 were $526 million, up 9 percent over the same period last year, as deliveries in the prior year quarter were impacted by the Machinists' strike at Boeing. Operating margin for the third quarter of 2009 was 18.1 percent, up from 15.2 percent in the third quarter of 2008, as a favorable cumulative catch-up of $4 million was realized during the quarter. During the third quarter of 2008, the segment realized an unfavorable $11 million cumulative catch-up adjustment.
Propulsion Systems
Propulsion Systems segment revenues for the third quarter of 2009 were $266 million, down 9 percent over the same period last year due to fewer 747 deliveries and lower aftermarket sales. Operating margin for the third quarter of 2009 was 13.3 percent, down from 16.2 percent in the third quarter of 2008, primarily due to lower spares volumes. During the quarter, an unfavorable cumulative catch-up of $1 million was realized.
Wing Systems
Wing Systems segment revenues for the third quarter of 2009 were $257 million, up 4 percent over the same period last year as increased deliveries to Airbus and Boeing more than offset fewer Hawker 850XP deliveries. Operating margin for the third quarter of 2009 was 10.3 percent, down from 10.9 percent in the third quarter of 2008, as an unfavorable cumulative catch-up of $1 million was realized during the quarter. During the third quarter of 2008, the segment realized an unfavorable $2 million cumulative catch-up adjustment.
Table 4. Segment Reporting
(Unaudited) (Unaudited)
($ in Millions, 3rd Quarter Nine Months
except margin ----------- -----------
percent) 2009 2008 Change 2009 2008 Change
-------------- ---- ---- ------ ---- ---- ------
Segment Revenues
Fuselage
Systems $525.9 $484.8 8.5% $1,497.6 $1,470.2 1.9%
Propulsion
Systems $266.2 $291.5 (8.7%) $772.1 $863.1 (10.5%)
Wing
Systems $257.3 $246.8 4.3% $712.9 $773.5 (7.8%)
All Other $4.4 $4.1 7.3% $18.2 $18.9 (3.7%)
---- ---- --- ----- ----- ----
Total Segment
Revenues $1,053.8 $1,027.2 2.6% $3,000.8 $3,125.7 (4.0%)
Segment Earnings
from Operations
Fuselage
Systems $95.2 $73.5 29.5% $229.4 $255.0 (10.0%)
Propulsion
Systems $35.3 $47.1 (25.1%) $97.2 $140.9 (31.0%)
Wing
Systems $26.6 $26.9 (1.1%) ($12.7) $92.3 (113.8%)
All Other $1.0 $0.0 NA ($1.0) $0.1 (1,100.0%)
---- ---- --- ----- ---- --------
Total Segment
Operating
Earnings $158.1 $147.5 7.2% $312.9 $488.3 (35.9%)
Unallocated
Corporate
SG&A Expense ($26.7) ($35.6) (25.0%) ($92.9) ($109.7) (15.3%)
Unallocated
Research &
Development
Expense ($0.4) ($0.7) (42.9%) ($1.6) ($1.1) 45.5%
----- ----- ----- ----- ----- ----
Total Earnings
from Operations $131.0 $111.2 17.8% $218.4 $377.5 (42.1%)
Segment Operating
Earnings as
% of Revenues
Fuselage
Systems 18.1% 15.2% 290 BPS 15.3% 17.3% (200)BPS
Propulsion
Systems 13.3% 16.2% (290)BPS 12.6% 16.3% (370)BPS
Wing
Systems 10.3% 10.9% (60)BPS (1.8%) 11.9% (1,370)BPS
All Other 22.7% 0.0% 2,270 BPS (5.5%) 0.5% (600)BPS
---- --- --------- ---- --- --------
Total Segment
Operating
Earnings as %
of Revenues 15.0% 14.4% 60 BPS 10.4% 15.6% (520)BPS
Total Operating
Earnings as %
of Revenues 12.4% 10.8% 160 BPS 7.3% 12.1% (480)BPS
Spirit Ship Set Deliveries
(One Ship Set equals One Aircraft)
2008 Spirit AeroSystems Deliveries
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total 2008
------- ------- ------- ------- ----------
B737 93 95 87 42 317
B747 4 7 4 1 16
B767 3 3 3 1 10
B777 20 22 18 8 68
B787 1 1 1 0 3
--- --- --- --- ---
Total 121 128 113 52 414
A320 Family 95 95 90 87 367
A330/340 24 21 23 22 90
A380 4 2 4 6 16
--- --- --- --- ---
Total 123 118 117 115 473
Hawker 850XP 15 24 24 28 91
--- --- --- --- ---
Total Spirit 259 270 254 195 978
=== === === === ===
2009 Spirit AeroSystems Deliveries
1st Qtr 2nd Qtr 3rd Qtr YTD 2009
------- ------- ------- --------
B737 74 96 93 263
B747 3 1 3 7
B767 3 3 3 9
B777 21 21 21 63
B787 2 2 2 6
--- --- --- ---
Total 103 123 122 348
A320 Family 105 101 94 300
A330/340 26 23 28 77
A380 0 2 5 7
--- --- --- ---
Total 131 126 127 384
Hawker 850XP 18 13 6 37
--- --- --- ---
Total Spirit 252 262 255 769
=== === === ===
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
For the For the For the For the
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
October 1, September 25, October 1, September 25,
2009 2008 2009 2008
---------- ----------- ---------- -----------
($ in millions, except per share data)
Net Revenues $1,053.8 $1,027.2 $3,000.8 $3,125.7
Operating costs and
expenses:
Cost of sales 878.3 864.3 2,637.2 2,596.1
Selling, general
and administrative 30.5 39.0 103.6 119.0
Research and
development 14.0 12.7 41.6 33.1
---- ---- ---- ----
Total Operating
Costs and Expenses 922.8 916.0 2,782.4 2,748.2
Operating Income 131.0 111.2 218.4 377.5
Interest expense and
financing fee
amortization (10.2) (9.9) (29.1) (29.5)
Interest income 1.6 4.4 6.2 15.1
Other income, net (0.5) (0.7) 5.2 0.9
---- ---- --- ---
Income Before
Income Taxes 121.9 105.0 200.7 364.0
Income tax provision (34.4) (31.0) (58.8) (118.4)
----- ----- ----- ------
Income Before
Equity in Net Loss
of Affiliate 87.5 74.0 141.9 245.6
Equity in net loss of
affiliate (0.2) - (0.2) -
---- --- ---- ---
Net Income $87.3 $74.0 $141.7 $245.6
===== ===== ====== ======
Earnings per share
Basic $0.63 $0.54 $1.03 $1.79
Shares 138.6 137.0 138.2 136.9
Diluted $0.62 $0.53 $1.01 $1.76
Shares 140.2 139.1 140.0 139.2
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
October 1, December 31,
2009 2008
---------- -----------
($ in millions)
Current assets
Cash and cash equivalents $206.7 $216.5
Accounts receivable, net 235.8 149.3
Current portion of long-term receivable 28.2 108.9
Inventory, net 2,204.6 1,882.0
Other current assets 85.8 76.6
---- ----
Total current assets 2,761.1 2,433.3
Property, plant and equipment, net 1,224.0 1,068.3
Pension assets 60.0 60.1
Other assets 238.6 198.6
----- -----
Total assets $4,283.7 $3,760.3
======== ========
Current liabilities
Accounts payable $421.2 $316.9
Accrued expenses 164.1 161.8
Current portion of long-term debt 6.7 7.1
Advance payments, short-term 194.3 138.9
Deferred revenue, short-term 59.3 110.5
Other current liabilities 25.8 8.1
---- ---
Total current liabilities 871.4 743.3
Long-term debt 583.5 580.9
Bonds payable, long-term 293.4 -
Advance payments, long-term 806.5 923.5
Deferred revenue and other deferred credits 54.3 58.6
Pension/OPEB obligation 49.1 47.3
Other liabilities 169.6 109.2
Shareholders’ equity
Preferred stock, par value $0.01, 10,000,000
shares authorized, no shares issued and
outstanding - -
Common stock, Class A par value $0.01,
200,000,000 shares authorized, 104,819,957
and 103,209,466 issued and outstanding,
respectively 1.0 1.0
Common stock, Class B par value $0.01,
150,000,000 shares authorized, 36,216,211
and 36,679,760 shares issued and
outstanding, respectively 0.4 0.4
Additional paid-in capital 946.3 939.7
Minority interest 0.5 0.5
Accumulated other comprehensive loss (124.1) (134.2)
Retained earnings 631.8 490.1
----- -----
Total shareholders’ equity 1,455.9 1,297.5
------- -------
Total liabilities and shareholders’
equity $4,283.7 $3,760.3
======== ========
Spirit AeroSystems Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
For the For the
Nine Months Nine Months
Ended Ended
October 1, September 25,
2009 2008
---------- -------------
($ in millions)
Operating activities
Net Income $141.7 $245.6
Adjustments to reconcile net income to net
cash provided by (used in) operating activities
Depreciation expense 91.9 90.8
Amortization expense 7.7 7.1
Accretion of long-term receivable (5.8) (13.0)
Employee stock compensation expense 6.7 11.6
Loss from the ineffectiveness of hedge
contracts - 0.4
(Gain) loss from foreign currency transactions (3.9) 0.3
Gain on disposition of assets - (0.2)
Deferred taxes (20.5) 0.9
Pension and other post-retirement
benefits, net 1.6 (21.5)
Grant income (1.4) -
Equity in net income of affiliate 0.2 -
Changes in assets and liabilities
Accounts receivable (84.6) (28.4)
Inventory, net (319.5) (432.9)
Accounts payable and accrued liabilities 104.9 30.5
Advance payments (61.6) 230.4
Deferred revenue and other deferred credits (54.9) 16.9
Other (13.8) 8.1
----- ---
Net cash provided by (used in) operating
activities (211.3) 146.6
------ -----
Investing Activities
Purchase of property, plant and equipment (158.0) (175.2)
Long-term receivable 86.5 87.1
Other 0.2 (0.7)
--- ----
Net cash (used in) investing activities (71.3) (88.8)
----- -----
Financing Activities
Proceeds from revolving credit facility 300.0 75.0
Payments on revolving credit facility (300.0) (75.0)
Proceeds from issuance of debt - 8.8
Proceeds from issuance of bonds 293.4 -
Proceeds from government grants 0.7 1.6
Principal payments of debt (5.8) (11.9)
Debt issuance and financing costs (17.2) (6.8)
----- ----
Net cash provided by (used in) financing
activities 271.1 (8.3)
----- ----
Effect of exchange rate changes on cash
and cash equivalents 1.7 (5.2)
--- ----
Net increase (decrease) in cash and cash
equivalents for the period (9.8) 44.3
Cash and cash equivalents, beginning of
the period 216.5 133.4
----- -----
Cash and cash equivalents, end of the period $206.7 $177.7
====== ======
Print This Page
Email This Page
Archives
Copyright Permissions
