Michelle Dunlop Herald Writer
Spirit announced a total of $590 million in third-quarter charges for its work on the 787 as well as Gulfstream’s G650 and G280 aircraft.
The Wichita, Kan.-based company faced the task of expanding its manufacturing sites and managing multiple development programs that were experiencing significant delays. That proved “very complex,” Jeff Turner, Spirit’s CEO, said in a statement.
Spirit’s shares dropped 30.3 percent on Thursday, closing at $15.10, down $6.56 for the day.
Spirit’s disclosure comes a day after Boeing reported earnings of $1.03 billion in the third quarter.
The jet maker was more than three years late in delivering the 787 but now is picking up the production pace on the mostly composite Dreamliner.
Boeing CEO Jim McNerney noted Wednesday that the company is facing increased competition and other pressures. He’s reaching out key suppliers to work on costs.
However, “this is not a matter of stealing margin from our partners,” McNerney said.
Spirit also announced on Thursday that it will receive $235 million as a final insurance settlement for storm damage at its Wichita facility earlier this year. The company had estimated $400 million in damages.
Spirit will report its third quarter earnings Nov. 1.