Spirit: 787 could lower 2008 earnings

Published 7:35 am Thursday, February 7, 2008

Spirit AeroSystems said it’s still working with the Boeing Co. to assess how 787 delays could impact the supplier’s cash flows.

“I continue to be pleased with our progress on the 787,” said Jeff Turner, president of Spirit.

During its 2007 earnings update, Spirit said delays on the 787 contributed to the company reported lower than expected earnings for the year.

Spirit said its predictions for 2008 include the assumption that the company will deliver 45 units to Boeing for the 787. Shipping less than 45 would reduce the company’s earnings.

At its factory in Wichita, Kan., Spirit is up to 787 fuselage barrel number 17. The company has delivered one flight test and two ground test barrels to Boeing. It also has shipped 15 pylons and nine fixed leading edges for the 787.

Turner said that late-arriving wiring and systems have been a problem. However, he said that once those items arrive, the company isn’t having trouble installing them.

“The 787 is and will be a tremendous program for spirit for decades to come,” Turner said.