Troubled Spirit AeroSystems, which is negotiating with Boeing to re-acquire the company, reported a first quarter loss of ($617) million, compared with a loss of ($281) million last year. Net revenues were 19% higher at $1.703 billion, up from 1.431 billion last year. Free cash flow was a net usage of ($444) million during the quarter, compared to ($69) in usage last year during the same period.
A significant portion of the losses result from poor quality control on Boeing 737 MAX fuselages, which needed substantial rework in Seattle. A new process is being put in place to jointly inspect the fuselages before shipment to Seattle by Boeing and Spirit Aero inspectors, which should improve product quality and financial results.
