Spirit Aero cuts 737 fuselage delivery forecast

1 month ago 62

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

The headquarters of Spirit AeroSystems Holdings Inc, is seen in Wichita, Kansas, U.S. December 17, 2019. REUTERS/Nick Oxford Acquire Licensing Rights

Nov 1 (Reuters) - Spirit AeroSystems (SPR.N) on Wednesday cut its full-year forecast for 737 fuselage deliveries, one of its biggest programs, as it grapples with a production defect involving improperly drilled holes on the aft pressure bulkhead.

The aerospace supplier said it expects to deliver 345 to 360 narrowbody fuselages in 2023, compared with its prior forecast of 370 to 390 units.

One of the industry's largest suppliers, Spirit has been struggling to stabilize cash flows due to rising labor costs and persistent inflationary pressures.

To add to its troubles, the company and largest customer Boeing (BA.N) in October expanded scope of their ongoing inspections of a production defect affecting 737 MAX 8 aircraft.

Boeing later cut its own 737 delivery forecast for the year due to quality woes at Spirit.

Spirit on Wednesday said third-quarter cash burn was $136 million, compared with a cash burn of $73 million a year ago.

Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Maju Samuel

Our Standards: The Thomson Reuters Trust Principles.

Read Entire Article