Spirit Aero to receive up to $350 million in funding from Boeing

By David Shepardson and Allison Lampert

(Reuters) -Spirit AeroSystems said Tuesday that planemaker Boeing (NYSE:BA ) will pay up to $350 million in advance payments to the firm, providing the struggling supplier a lifeline as it continues to burn cash after four consecutive years of losses.

Reuters had reported last week that Spirit and Boeing were close to reaching a funding agreement as Spirit Aero is juggling financial and production challenges, having issued a "going concern" warning last week. The fuselage supplier expects to burn around $450 million to $500 million over the last three months of 2024 and first half of 2025, according to filings.

"This agreement helps improve our liquidity. We continue to pursue a range of options to address our financial and spacing storage constraints and are working with our customers on these matters," Spirit spokesperson Joe Buccino said.

Spirit said the advanced payments are to produce Boeing products at the rates required by the planemaker, and "to address Spirit's high levels of inventory and lower operational cash flows, decrease in expected deliveries to Boeing and higher factory costs to maintain rate readiness, and lingering effects brought on by the recent strike by Boeing employees."

Spirit, which must repay the $350 million in 2026, saw its shares rise 1.2%.

Boeing, which plans to buy its one-time subsidiary, is trying to revive its battered supply chain and jet production after a 53-day strike halted most of its output. Boeing has said it plans to gradually resume production of its 737 MAX as machinists are set to return to their jobs Tuesday.



Spirit previously disclosed it drew down a $350-million bridge loan set up when Boeing agreed to acquire the supplier, and previous advances from Boeing and rival Airbus that Spirit has not repaid.

Spirit Aero's finances suffered when Boeing MAX production slumped after a Jan. 5 mid-air blowout on a new model. A new process for vetting fuselages for flaws introduced in March further delayed Spirit's deliveries, leading to a pile-up of fuselages inside and outside the supplier's sprawling Kansas factory.

Source: Investing.com

Последние публикации
Best Buy cuts forecast, shares drop
26.11.2024 - 15:00
Google to tweak search results in Europe after rivals complained
26.11.2024 - 15:00
EV maker VinFast narrows Q3 losses, beats revenue estimates on strong demand
26.11.2024 - 15:00
Abercrombie & Fitch lifts sales, operating margin outlook as Q3 tops estimates
26.11.2024 - 15:00
RBC Capital Markets upgrades Next, sees strong growth ahead
26.11.2024 - 15:00
Saudi Arabia stocks lower at close of trade; Tadawul All Share down 0.44%
26.11.2024 - 15:00
Aviation sector officials warn of Trump effect on green jet fuels
26.11.2024 - 15:00
Best Buy, Kohl's and General Motors fall premarket; Dick's Sporting Goods rises
26.11.2024 - 15:00
JM Smucker raises annual profit forecast on resilient demand, higher prices
26.11.2024 - 15:00
UK regulator fines Macquarie Bank over serious trading control failures
26.11.2024 - 15:00
Signs of bubble emerge post election, Barclays warns
26.11.2024 - 15:00
Amgen falls after obesity study results
26.11.2024 - 15:00
Banco BPM rebuffs UniCredit bid, saying it undervalues bank
26.11.2024 - 15:00
Melrose gains after JP Morgan raises price target
26.11.2024 - 15:00
GM and Ford shares dip on Trump's tariff threats to China, Canada, Mexico
26.11.2024 - 15:00

© Analytic DC. All Rights Reserved.

new
Анализ рынка Как повлият завтра отчет NFP на курс доллара США?