UPDATE 1-Spirit AeroSystems reports quarterly loss

Thu Nov 1, 2012 4:30pm EDT

Nov 1 (Reuters) - Spirit AeroSystems Holdings, which supplies parts to major aircraft makers, reported a loss for the third quarter, due to cost overruns on several airplane programs.

The company said it lost $134 million, or 94 cents a share, in the quarter, compared with earnings of $67 million, or 47 cents a share, a year earlier.

The loss was widely expected after the company warned last week that it would take a $590 million charge in the quarter because of production problems at its facilities in Tulsa, Oklahoma.

Before the warning, analysts had expected the company to report 53 cents a share in profit for the quarter.

The company reiterated Thursday that it would try to renegotiate contracts with its customers, which include Boeing and Gulfstream, a unit of General Dynamics to help reduce losses on the work it performs for those companies.

However, Jeff Turner, Spirit's CEO, acknowledged in a conference call with analysts that the scope to make changes may be limited.

"Most of our contracts ... are based on the assumption that we will perform to the requirements on the contract," he said Thursday.

The company said revenue rose 21 percent in the quarter to $1.365 billion.

In addition to the charge from production problems, the company booked a gain of $219 million in the quarter from a settlement of insurance claims for storm damage to its facilities in Wichita.

The company updated its guidance for the full year, saying it expects to earn between 19 cents and 24 cents a share for the year. When insurance payments are excluded, the company expects a loss of 38 cents to 43 cents a share.

The company's shares lost nearly one-third of their value following the earnings warning. On Thursday they rose 35 cents to $15.98, still well below the $21 they fetched before the profit warning last week.

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