Spirit AeroSystems [NYSE: SPR] has announced that Boeing directed the company to stop all 737 MAX deliveries to Boeing effective Jan. 1, 2020, due to Boeing´s temporary suspension of 737 MAX production, the company said.
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.
Spirit AeroSystems designs and builds aerostructures for both commercial and defense customers. With headquarters in Wichita, Kansas, Spirit operates sites in the US, UK, France and Malaysia. The company´s core products include fuselages, pylons, nacelles and wing components for the world´s premier aircraft.