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.
The problem for Spirit is that virtually all of their programs are now in forward loss positions, costing more than they bring in.That is unsustainable over the long term.
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