7-Apr-2011 Source: Spirit AeroSystems
Spirit AeroSystems Holdings, Inc. (NYSE: SPR) today announced it expects a pre-tax charge of approximately $28 million, or $0.13 per share associated with the development effort on the CH-53K helicopter program.
“As a result of lessons learned on development of the initial cockpit and cabin, we have decided to proceed with a more traditional design and build approach as we prepare to manufacture the remaining test units and focus on the continued success of the program,” said Mike King, senior vice president and general manager of Spirit’s Fuselage Systems Segment.
The additional costs associated with this change have resulted in a loss program for Spirit on the Systems Development and Demonstration (SDD) contract. Spirit won the ~$150 million firm fixed-price contract in May 2007 and delivered the first of seven CH-53K test articles in December 2010.
The company expects to achieve its 2011 fully diluted earnings per share guidance of $1.70-1.90.Â Spirit will release its first quarter 2011 financial results, including the impact of the charge, at its next quarterly financial performance announcement on May 5, 2011.
On the web: http://www.spiritaero.com
About Spirit AeroSystems, Inc.
Based in Wichita, Kan., Spirit AeroSystems is the world’s largest independent supplier of commercial airplane assemblies and components. In addition to its Kansas facility, Spirit has locations in Tulsa and McAlester, Okla.; Kinston, N.C.; Prestwick, Scotland; Preston, England; Kuala Lumpur, Malaysia; and is developing a new manufacturing facility in Saint-Nazaire, France. In the U.S., Spirit’s core products include fuselages, pylons, nacelles and wing components. Additionally, Spirit provides aftermarket customer support services, including spare parts, maintenance/repair/overhaul, and fleet support services in North America, Europe and Asia. Spirit Europe produces wing components for a host of customers, including Airbus.