Spirit Aerosystems sees Q3 revs below consensus (17.19)
- Co issues downside guidance for Q3 (Sep), sees Q3 (Sep) revs of $1.43-1.45 bln vs. $1.51 bln FactSet Consensus.
- Gross (Loss) Profit (Net Revenues less Cost of Sales): Gross loss of $50 to $60, down compared to gross profit of $83 for the same period of 2022, primarily driven by higher changes in estimates recognized in the third quarter of 2023 including forward loss charges of $100 to $105 primarily related to the Boeing 787 and Airbus A350 programs, as well as negative cumulative catch-up adjustments of $60 to $65 primarily related to the Boeing 737 and Airbus A320 programs.
- The forward losses on the Boeing 787 (BA) and Airbus A350 (EADSY) programs were driven by higher estimates of supply chain, labor and other costs. The unfavorable cumulative catch-up adjustments on the Boeing 737 and Airbus A320 programs were driven by increased supply chain, labor and other costs and, to a lesser extent, rework costs related to the quality issue on the 737 aft pressure bulkhead and unfavorable foreign currency movements on the A320 program.
- Free Cash Flow(1): Free cash flow usage of $135 to $140, compared to usage of $73 for the same period of 2022, reflects higher negative impacts to working capital, partially offset by the expected $50 customer cash advance received during the third quarter of 2023.