Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Spirit posts quarterly loss on pandemic, 737 MAX pain

Published 02/23/2021, 08:24 AM
Updated 02/23/2021, 08:25 AM
© Reuters. The headquarters of Spirit AeroSystems Holdings Inc, is seen in Wichita
BA
-
SPR
-

(Reuters) - Spirit AeroSystems (NYSE:SPR) Holdings Inc reported a bigger-than-expected quarterly loss, hurt by fewer aircraft part shipments to top customers Boeing (NYSE:BA) Co and Airbus following a slump in demand for air travel due to the COVID-19 pandemic.

"2020 was one of the most challenging years in aviation history. For Spirit, the 737 MAX grounding and the COVID-19 pandemic created a dual-crisis," Spirit Chief Executive Officer Tom Gentile said.

The company now stands to benefit from ungrounding of the Boeing 737 MAX jet by the U.S. Federal Aviation Administration in November after a 20-month ban. The MAX accounted for about 50% of Spirit's sales in 2019.

Spirit's total deliveries of shipsets, or complete sets of parts, fell 48.9% to 231 units in the fourth quarter. Boeing 737 MAX deliveries fell to 19 shipsets from 153 a year ago.

European planemaker Airbus last week forecast flat deliveries in 2021 as it braces for more coronavirus-induced uncertainty in the wake of an annual loss. Boeing has yet to set out detailed targets.

Spirit posted a loss of $295.9 million, or $2.85 per share, in the quarter ended Dec. 31, compared with a profit of $67.7 million, or 65 cents per share, a year earlier.

On an adjusted basis, the company lost $1.31 per share. Analysts had expected the company to report a loss of 85 cents per share, according to Refinitiv IBES data.

© Reuters. The headquarters of Spirit AeroSystems Holdings Inc, is seen in Wichita

Total revenue decreased 55.3% to $876.6 million.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.