It’s official — Spirit Aerosystems announced this morning that they will suspend Boeing 737 Max Production staring on January 1st.
Spirit says, in a press release KFDI News received just before 7:00 a.m., they will continue to communicate with Boeing about the timetable to resume production. More information will come out soon via Spirit’s Q4 earnings release. They say HALF of their annual revenue comes from 737 aircraft components.
We know accurate information is important to you at this time, so we want to give you Spirit’s exact words from their press release:
Spirit AeroSystems [NYSE: SPR] announced that Boeing directed the company yesterday to stop all 737 MAX deliveries to Boeing effective Jan. 1, 2020, due to Boeing’s announced temporary suspension of 737 MAX production. Accordingly, Spirit will suspend 737 MAX production beginning on Jan. 1. Spirit will continue to communicate with Boeing regarding the timetable for resuming production.
Because revenue from 737 aircraft components represents more than 50 percent of Spirit’s annual revenue, this suspension will have an adverse impact on Spirit’s business, financial condition, results of operations, and cash flows. Additional financial information related to the suspension will be provided in Spirit’s fourth quarter/full year 2019 earnings release.
Spirit is evaluating all potential actions to align its cost base with lower production levels expected in 2020. Decisions will be guided by a focus on what is best for the long-term interests of Spirit’s stockholders and other stakeholders, including employees.
KFDI News will continue to follow this story and bring you more information as we gather it.
