Spirit AeroSystems Reports Third Quarter 2021 Results
Delivered 250 shipsets, compared to 206 in Q3 2020; delivered 47 737 shipsets in Q3 2021 compared to 15 in Q3 2020
Revenue of $980 million in Q3 2021, compared to $806 million in Q3 2020
Cash guidance unchanged: full-year 2021 cash used in operations is expected to be between $(50) to $(150) million; full-year 2021 free cash flow* is expected to be between $(200) and $(300) million
EPS of $(1.09) in Q3 2021 compared to $(1.50) in Q3 2020
Established business divisions to focus on key growth markets: Commercial, Defense & Space, and Aftermarket; Segment reporting change beginning Q4 2021
Prestwick, Scotland, Business Wire, Spirit AeroSystems (Europe) Limited (UK), a subsidiary of Spirit AeroSystems Holdings, Inc. [NYSE: SPR], has successfully delivered the first set of new advanced composite spoilers to Airbus for the A320 Family. The spoilers are produced using Spirit’s pioneering Resin Transfer Moulding (RTM) technology and are the first to feature on a flying aircraft.
The redesigned spoiler is produced using a highly-automated advanced manufacturing, out-of-autoclave process, resulting in significantly improved manufacturing efficiencies, and reduced energy and costs compared to the original, more traditional design. Spirit is the first to industrialize this innovative composite technology in the UK aerospace sector.
The spoilers are produced in Spirit’s world-class manufacturing facility in Prestwick, Scotland, using the latest automation and robotics, which included investment from the Scottish Government in the development of the technology. Such cost-effective technologies and manufacturing processes will play a central role in the development of the next generation of aircraft programs, and help Spirit increase its competitive advantage in advanced manufacturing.
(Reuters) – At least 15 people were injured on Friday after a liquid nitrogen line exploded at a Textron Aviation plant near Wichita, Kansas, potentially setting back the launch of a new aircraft under development, county and company officials said.
Image from dailymail.co.uk
Emergency medical services took 11 people to the hospital, one of them suffering potentially serious injuries, Dr. John Gallagher, director of Sedgwick County EMS, told a news conference.
Company officials said two of victims went to the hospital in private cars and two were treated at the scene.
Injuries were limited because only a skeleton crew was on duty during the holidays, said Deputy Chief Daniel Wegner of the Sedgwick County Fire Department.
The explosion in a 3-inch liquid nitrogen gas line also damaged a storage tank, causing nitrogen gas to vent out of the building, Wegner said.
News video from the scene showed what appeared to be a steam cloud billowing out of the damaged building. The gas was not harmful, Wegner said.
A second valve also ruptured, said Kate Flavin, a spokeswoman for Sedgwick County, and emergency crews vented nitrogen gas from the affected tanks before doing another search of the plant.
No others were found injured and control of the facility was returned to Textron shortly after noon, but emergency crews remained on standby at the scene, she said.
Damage was contained to Plant 3, a site for composite manufacturing and experimental aircraft fabrication including that of the SkyCourier, said Stephanie Harder, a spokeswoman for Textron.
The SkyCourier, a utility turboprop under development, is due to enter service in 2020, Textron has previously said. Harder said it was too early to determine what damage the prototype aircraft under production may have suffered.
Textron Aviation, a unit of Textron Inc (TXT), makes Beechcraft and Cessna aircraft.
The Wichita-area economy has long been supported by aircraft manufacturing. Boeing Co (BA) announced in January it would suspend production of its 737 Max jetliner, which has been grounded worldwide after two fatal crashes. That move affected workers at Spirit AeroSystems in Wichita, Boeing’s top supplier, which produces the jet’s fuselages.
Reporting by Daniel Trotta, Additional reporting by Rich McKay; Editing by Daniel Wallis, Bill Tarrant and Richard Chang
The first VIP AW109 Trekker for the European market is destined for the United Kingdom where Leonardo has a fleet of almost 100 VIP helicopters
Leonardo has a global fleet of over 830 VIP helicopters performing private, charter, scheduled, corporate transport, air-taxi, tourism and VVIP transport
With skids and high levels of customization, the AW109 Trekker is slated to increase Leonardo’s impressive VIP market share (44% in twin engines)
The first Leonardo AW109 VIP Trekker helicopter for a European customer debuts today at the Monaco Yacht Show – Leonardo stand QA13 / Quai Antoine 1er. The Monaco Yacht Show (25 to 28 September) is one of the most important international luxury yacht showcases. After the show, the VIP Trekker will fly to the United Kingdom for delivery thanks to Sloane Helicopters, Leonardo’s distributor for over twenty years in the United Kingdom and Ireland. The privately-owned aircraft will be operated by Apollo Air Services, available for VIP charter market.
The AW109 Trekker is the newest model within Leonardo’s light twin-engine helicopter range. The Trekker joins a fleet of Leonardo VIP helicopters that lead the UK and Irish market: almost 100 aircraft with nearly 90% represented by the AW109 series (Power, Grand and GrandNew). This market is second only to Brazil where about 130 Leonardo VIP helicopters fly amongst 400 San Paolo helipads.
The helicopter maker and the distinguished Italian Style of its VIP helicopter design are embraced around the world, boasting a 44% global share in the twin-engine VIP helicopter market. The Company’s fleet of 2,300 civil helicopters are used for law enforcement, offshore transport, utilities, search and rescue and VIP / corporate transport. More than 830 aircraft carry out a range pf passenger transport missions including private, charter, scheduled flights, corporate, air-taxi, tourism, VVIP.
Leonardo’s VIP helicopter models all share a strong commitment to high performance, versatility, safety, reliability, support and training services, design and a high level of customization. The Company features the largest range of executive, corporate and government transport helicopters including the AW119Kx single engine 1.8 tonne, the AW109 series, the AW169, AW139, AW189 and the three-engine 16 tonne.
With the AW109 Trekker Leonardo is destined to increase its notable market share, thanks to features that combine the qualities of the AW109 Grand—long recognized by operators—including its spacious cabin, state-of-the-art Genesys Aerosystems avionics and skids, particularly suitable for landing on yachts. The combination is unmatched in terms of cost/effectiveness, technology and performance.
Sloane Helicopters will be maintaining two AW109 Trekkers in UK. Building on the qualities that have made the AW109 series the benchmark helicopters in its category, Sloane will be performing demonstration flights with the new Leonardo light twin inviting operators to learn more about its unique characteristics.
NOTE TO EDITORS ON THE AW109 TREKKER VIP
The AW109 Trekker combines excellent performance, the latest technology and high safety standards to provide customers an ideal combination of comfort and capabilities. The finest materials and the highest levels of craftsmanship give the helicopter a unique style and ensure passengers a pleasant journey.
The AW109 Trekker is equipped with a latest generation Genesys Aerosystems glass cockpit that can be configured according to customer needs: one or two pilots, VFR or IFR.
The large and bright cabin can be configured in a variety of layouts and boasts an effective soundproofing system to offer passengers an extremely pleasant flight. Large sliding doors on both sides ensure easy entry and exit, while the luggage compartment offers high load capacity.
It can carry 6/7 passengers and has a maximum take-off weight of 3.175 kg. Over 60 AW109 Trekkers have already been sold to customers around the world to date for multiple missions such as VIP transport, offshore, utilities, EMS / SAR, law enforcement.
(Reuters) – Canada’s WestJet Airlines Ltd said on Monday it will be acquired by private equity firm Onex Corp in an all-cash deal for C$3.53 billion ($2.63 billion).
Including debt, the deal is valued at about C$5 billion.
As part of the deal, WestJet shareholders will receive C$31 for each share held, representing an about 67% premium to its closing price on Friday.
The investment will be led by Onex Partners, Onex’s private equity platform focused on larger investment opportunities and WestJet’s board has recommended that its shareholders vote in favor of the deal.
The private equity fund has a history of investing in aerospace, having previously held a major stake in Boeing supplier Spirit Aerosystems.
The deal is expected to close in the latter part of this year or early next year, the company said.
CIBC Capital Markets and B of A Merrill Lynch were the financial advisers to WestJet, while Barclays, Morgan Stanley and RBC Capital Markets advised Onex.
(Reporting by Debroop Roy in Bengaluru; Editing by Arun Koyyur)
(Reuters) – Boeing Co’s largest supplier Spirit AeroSystems Holdings Inc reported strong first-quarter results on Wednesday, while following the planemaker in suspending its full-year outlook in the face of the global grounding of 737 MAX jets.
The crisis with Boeing’s most popular aircraft has thrown into doubt orders for a raft of parts makers who have been investing heavily to meet record-breaking demand from the world’s biggest planemaker over the past two years.
Spirit, which makes fuselage, structural engine components and wing parts for the MAX, did a deal with Boeing last month to stick to its current parts delivery schedules for now, and its profits in the first quarter were up 30 percent, according to Wednesday’s quarterly results.
Boeing however has announced cutbacks in its monthly production of MAX jets to 42 from 52 and while it says it is nearing certification for a software fix for the jet, airlines are assuming the planes will not be back in the air before August.
Spirit said with the uncertainty around MAX production it could not stand by its previous full-year outlook which had factored production for MAX jets rising to 57 units per month in June.
“As we now expect to remain at 52 aircraft per month for some period of time, (prior) guidance does not reflect our current outlook,” Spirit Chief Executive Officer Tom Gentile said, adding he was waiting for more clarity from Boeing on MAX’s return to service.
MAX’s other major supplier General Electric Co, which makes engines with Safran SA of France, on Tuesday stuck to its full-year forecasts, while highlighting risk due to MAX’s reduced production.
Another MAX supplier United Technologies Corp last month included an up to 10 cents per share impact in its full-year profit outlook from the groundings of the jet, assuming Boeing produced at 42 aircraft per month for the rest of the year.
Spirit, whose shares are down about 10 percent since the fatal crash of the Ethiopian Airlines’ jet on March 10, rose as much as 3.5 percent to $89.96 in morning trade.
“Given that (Spirit’s) shares have already notably sold off, we think much of this … has been discounted into the price,” Vertical Research Partners Krishna Sinha said.
The company said it has taken actions including deferring capital investments and pausing hiring and share repurchases to mitigate the financial impact of the MAX production change.
On an adjusted basis, Spirit earned $1.68 per share, beating analysts’ average estimate of $1.64 per share, according to IBES data from Refinitiv.
Total revenue rose 13.4 percent to $1.97 billion (£1.51 billion), beating estimates of $1.93 billion.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)
(Reuters) – Boeing Co (BA.N) delivered a record 806 aircraft in 2018 as it overcame supplier woes, retaining the title of the world’s biggest planemaker for the seventh straight year.
The company’s shares rose as much as 3.9 percent to $340.90 and were the biggest percentage gainer on the Dow Jones Industrial Average (.DJI).
European rival Airbus SE (AIR.PA), which will report its numbers on Wednesday and lags behind Boeing due to engine delays, said it achieved its 800-jet target pending final audit.
“Overall, Boeing is taking market share from its main competitor Airbus and is well positioned with strong commercial and military demand,” said CFRA Research analyst Jim Corridore, who upgraded the stock to “strong buy” from “buy”.
Investors and analysts closely watch the number of planes Boeing turns over to airlines and leasing firms for hints on the company’s cashflow and revenue.
The latest numbers indicate that fuselage and engine delays at suppliers in 2018 are largely behind Boeing as it gears up to meet surging demand for airplanes in 2019 amid booming air travel.
“In addition to the ongoing demand for the 737 MAX, we saw strong sales for every one of our twin-aisle airplanes,” said Ihssane Mounir, senior vice president of commercial sales and marketing.
To mitigate supply chain snarls, Boeing helped expand production capacity at suppliers who have hired workers, including retirees this year.
In October, its biggest supplier Spirit AeroSystems Holdings Inc (SPR.N) said it was back on track to meet the surging demand for its aircraft parts.
CFM International, co-owned by France’s Safran (SAF.PA) and General Electric Co (GE.N), also affirmed in the same month its commitment to deliver 1,100 to 1,200 units despite being roughly four weeks behind schedule.
ORDER BOOM
Boeing also looked set to beat Airbus for aircraft orders on a like-for-like basis in 2018 after booking 893 net orders, excluding cancellations in the year.
Meanwhile, Airbus ended November with 380 net orders, to which it has since added confirmed deals for another 220 aircraft.
According to industry sources, it won another 150 from Asian-backed leasing companies that are yet to be announced, with Boeing also getting a lift from Chinese demand.
The Airbus tally, however, included 120 of the former Bombardier CSeries, a Canadian plane programme which it bought last year.
Orders for Boeing and Airbus are seen down compared to 2017 as airlines fret over trade tensions and the slowing global economic growth. But deliveries at both rose on the back of an earlier order boom.
“69 December 737 deliveries suggest (supplier) bottlenecks easing. Solid December book-to-bill closes year at 1.1x and helps mitigate cycle concerns,” Credit Suisse analyst Robert Spingarn said in a client note.
(Reporting by Ankit Ajmera in Bengaluru and Tim Hepher in Paris; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
Spirit AeroSystems has now delivered the first two fuselages that will be used as the test aircraft for the Boeing 737 MAX 7 narrow-body passenger jet.
