Spirit AeroSystems Holdings, Inc. [NYSE: SPR] has reported first quarter 2018 financial results, announced the acquisition of Asco Industries, highlighted plans to refinance its debt, outlined plan for ASR and announced a 20 percent increase in the quarterly cash dividend, the company said.
Spirit´s first quarter 2018 revenue was USD 1.7 billion, up two percent from the same period of 2017. This increase was primarily driven by higher revenue recognized on the Boeing 737 program resulting from the adoption of ASC 606 in addition to increased recurring and non-recurring activity, higher production deliveries on the Airbus A320 program and increased defense-related activity, partially offset by lower production deliveries on the Boeing 777 program and lower revenue recognized on the Boeing 787 program as a result of the adoption of ASC 606.
Spirit´s backlog at the end of the first quarter of 2018 was approximately USD 47 billion, with work packages on all commercial platforms in the Boeing and Airbus backlog.
Operating income for the first quarter of 2018 was USD 160 million, down 22 percent compared to USD 204 million in the same period of 2017. This decrease was primarily due to lower margin recognized on the Boeing 737 program, lower production deliveries on the Boeing 777 program and net forward losses recognized on the Boeing 787 program, partially offset by higher non-recurring activity on the Boeing 737 program. First quarter EPS was USD 1.10, down compared to USD 1.17 in the same period of 2017. (Table 1)
Cash from operations in the first quarter of 2018 was USD 167 million, up compared to USD 112 million in the same quarter last year, primarily due to lower advance repayments and timing in working capital. Free cash flow* in the first quarter of 2018 was USD 118 million, up compared to free cash flow* of USD 71 million in the same quarter last year. (Table 3)
Cash balance at the end of the quarter was USD 438 million. The company´s USD 650 million revolving credit facility remained undrawn at the end of the quarter. During the first quarter, Spirit repurchased 0.9 million shares for USD 75 million.