Spirit AeroSystems, a leading aerostructure manufacturer, has reported a significant decline in its deliveries of 737 MAX shipsets for the second quarter, attributing the drop to stringent inspection processes. Deliveries fell by 64% year-over-year, plummeting from 74 fuselages in the same period last year to just 27. This sharp decrease is largely due to Boeing's recent policy shift, which now prevents the transfer of non-compliant fuselages to the final assembly line in Renton, Washington.
The new inspection process, introduced in March, has slowed down the production pipeline between Spirit and Boeing, leading to a buildup of inventory despite Spirit maintaining a production rate of 31 shipsets per month at its Wichita, Kansas facility. The ongoing delays have forced Spirit to recalibrate its expectations, with the company admitting that the current delivery figures are "lower than anticipated."
While the 737 MAX program has struggled, Spirit reported an increase in deliveries for Boeing's 787 Dreamliner, rising from 10 units a year ago to 14 in the recent quarter. Similarly, deliveries for Airbus' A320 and A350 programs also saw a rise, with increases of 18% and 15%, respectively.
In light of these operational challenges and the anticipated reacquisition by Boeing, Spirit has announced it will no longer provide production guidance or host earnings calls. The acquisition, expected to be finalized by mid-2025, is contingent upon regulatory approval and the divestment of specific Airbus sites currently owned by Spirit.
Despite the setbacks, Spirit's revenue for the quarter grew by 9.3% to $1.5 billion. However, the company's losses also widened significantly, reaching $415 million compared to $206 million in the same quarter last year.
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