Spirit AeroSystems Holdings, Inc. (NYSE: SPR) reported fourth quarter and full-year 2015 financial results driven by strong operating performance of mature programs.
Spirit´s fourth quarter 2015 revenues were USD1.61 billion, up 2 percent from revenues of USD1.57 billion for the same period of 2014, primarily due to higher revenues on the A350 XWB program driven by higher production deliveries.
Operating income for the fourth quarter of 2015 was USD206 million compared to operating loss of (USD273) million in the fourth quarter of 2014 primarily due to the Gulfstream divestiture.
Net income for the quarter was USD138 million, or USD1.01 per share, compared to net loss of (USD106) million, or (USD0.77) per share, in the same period of 2014. Revenue for the full-year 2015 declined 2 percent to USD6.6 billion primarily due to the Gulfstream wing divestiture and lower revenues recognized on the 787 program.
Operating income for the full-year was USD863 million compared to operating income of USD354 million for the prior year. Full-year net income was USD789 million, or USD5.66 per share, compared to net income of USD359 million, or USD2.53 per share in 2014.
The board of directors has authorized a new share repurchase program of up to USD600 million of Spirit´s common stock under which repurchases may be made intermittently through December 31, 2017.
Spirit´s backlog at the end of the fourth quarter of 2015 increased by 1.4 percent from the previous quarter to USD47 billion as orders exceeded deliveries.
Spirit updated its contract profitability estimates during the fourth quarter of 2015 resulting in pretax USD8.5 million, or USD0.04 per share, favorable cumulative catch-up adjustments on mature programs due to improved performance and reduced risks.
Wing Systems segment revenues in the fourth quarter of 2015 were USD352 million, down from USD397 million for the same period last year primarily due to the Gulfstream divestiture. Operating margin for the fourth quarter of 2015 was 10.7 percent as compared to 15.2 percent during the same period of 2014.
In the fourth quarter of 2015, the segment recorded pretax USD3.3 million favorable cumulative catch-up adjustments on mature programs and a favorable change in estimate of USD6.3 million on the non-recurring A350 XWB program and a forward loss of USD6.6 million on the 747-8 program. In comparison, the segment recorded pretax USD14 million favorable cumulative catch-up adjustments on mature programs in the fourth quarter of 2014.