Spirit reports losses in Q4, plans to scale back non-manufacturing positions
Spirit AeroSystems reported a loss of $243.1 million in the fourth quarter of 2022 despite delivering 30 more Boeing 737 Max shipsets than in the same period a year earlier.
Spirit said it had a loss of $2.32 per share. Losses, adjusted for non-recurring costs, were $1.46 per share.
Full-year revenues for the Wichita manufacturing giant were $5 billion, up 27% from 2021. Spirit delivered more 737s and and increased production on Airbus A320 and A220 shipsets than in 2021, but demand lagged on the Boeing 747 and 787 programs.
“2022 was a challenging year for the entire industry as we worked through supply chain part shortages and labor attrition, which impacted overall deliveries and profitability,” CEO Tom Gentile said in a statement.
“We learned a lot over the course of the year which we will apply to future production rate increases.”
Overall deliveries increased to 1,297 shipsets during 2022 compared to 1,022 shipsets in 2021, including a significant uptick in 737 Max deliveries from 162 shipsets to 281.
Gentile says the company plans to produce approximately 737 Max 420 shipsets in 2023.
Spirit’s overall cash used in operations increased more than sixfold from $63 million to $395 million year-to-year, which officials say reflects the repayment of $123 million related to the 737 Max advance they received in 2019.
Spirit announced in its earnings call Tuesday that 1,000 indirect positions would be removed from the 2023 organizational headcount plan. That move won’t affect Wichita manufacturing jobs.
“We intend to accomplish this target by freezing hiring for various positions, taking advantage of attrition, and completing any necessary reductions,” Spirit said in a statement. “This decision does not impact our recruitment efforts for direct positions associated with production and customer demands.”
Spirit spokesperson Forrest Gossett said the company is actively recruiting for an unspecified number of manufacturing jobs in Wichita.
Spirit will hold a job fair on Saturday, Feb. 11 from 8 a.m. to 2 p.m. at their headquarters on south Oliver. Hourly workers are being offered a $3,000 sign-on bonus, and candidates will have an opportunity for in-person interviews and on-the-spot job offers.
Contributing: The Associated Press
