Spirit Aero reports higher cash burn on strike hit, quality issue
(Reuters) — Spirit AeroSystems (NYSE:SPR) on Wednesday reported a higher cash burn for the second quarter, as the supplier of parts to Boeing (NYSE:BA) faced a roughly week-long work stoppage due to a contract standoff and a quality issue related to a 737 fitting.
Cash burn was $211 million for the three months through June, the company said, compared $79 million a year earlier.
Spirit had to halt work at its Wichita, Kansas, plant in June after some employees represented by the International Association of Machinists and Aerospace Workers (IAM) rejected a new contract and went on a strike.
The Wichita site makes the entire fuselage for Boeing's bestselling 737 MAX narrowbody jet and the forward sections for most of its other aircraft, as well as pylons for the Airbus A220.
The workers later approved a new, improved contract, to end the strike.
Spirit has also been grappling with a rework on incorrectly installed fittings that join the aft fuselage to the vertical tail on some 737 aircraft.
In May, it said the rework and the resulting disruptions could cost it $31 million in full-year profit, while adding that additional costs were expected.
Revenue rose 8% to $1.37 billion.
Second-quarter adjusted loss per share was $1.46. Analysts polled by Refinitiv had expected a loss of 87 cents per share. It was not immediately clear if the figures were comparable.
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