SPR - Spirit AeroSystems Has a Boeing Problem. Here's Its Solution
Spirit AeroSystems (NYSE: SPR), a onetime Boeing (NYSE: BA) subsidiary and still a major supplier to the aerospace giant, was expected to be among the companies most affected by the grounding of 737 MAX and Boeing's many other issues. And sure enough Spirit reported third-quarter results well under expectations.
Spirit manufactures the fuselage for the 737 MAX, and thanks to an agreement with Boeing has been able to continue the work even as an investigation into the plane's troubles continues. But that agreement has not been enough to fully shield the company, which remains highly reliant on Boeing more than a decade after going out on its own.
Management at Spirit had a plan in place well before the 737 MAX had problems to deal with that overreliance, and concurrent to releasing earnings announced a bold move that would dramatically expedite that plan. Here's where things stand for Spirit AeroSystems today, and where the company hopes to head in the future.