Boeing supplier Spirit AeroSystems stands by 2013 forecast
(Reuters) - Spirit AeroSystems Holdings Inc (SPR.N), which supplies parts for aircraft including Boeing Co's (BA.N) Dreamliner, reported better-than-expected quarterly results on strong global orders for aircraft and reiterated its 2013 outlook.
Spirit, which generates about 85 percent of its revenue from Boeing, did not mention any impact on the company from the worldwide grounding of Boeing 787 Dreamliners on January 16 after a series of battery-related incidents.
Shares of Wichita, Kansas-based Spirit, which makes fuselages, propulsion systems and wind components, rose as much as 10 percent on the New York Stock Exchange.
Boeing said last month its 2013 forecast did not take into account any potential impact from the grounding of the Dreamliner. Its suppliers have been in focus amid concerns that aircraft delivery schedules might get disrupted.
"The story on Boeing is, they are having battery issues. But Boeing is forging ahead with its planned production rate increases," BB&T Capital Markets analyst F. Carter Leake said. "At these rates, Spirit is reasonably well positioned."
Spirit, which is Boeing's biggest supplier of fuselages and wing components, also makes parts for Airbus EAD.PA and other jet makers. It has benefited recently from rising commercial aircraft production.
Spirit is on the lookout for a new Chief Executive Officer as existing CEO Jeff Turner plans to retire early this year. The company on Tuesday said the search was still on.
"We are looking at both internal and external candidates thoroughly. We have reviewed a number of candidates ... We are moving through the process," CEO Turner said on a conference call with analysts.
In the quarter ended December, the company's revenue rose 17 percent to $1.43 billion.
Spirit's order backlog at the end of the quarter was $35 billion, up about 4 percent from a year earlier. Net income edged up to $60.7 million, or 43 cents per share, from $60.4 million, or 42 cents a share.
Analysts on average were looking for earnings of 41 cents per share on revenue of $1.37 billion, according to Thomson Reuters I/B/E/S.
The company's shares, which have risen 6 percent in the last three months, gained a further 9 percent on Tuesday to $17.58. They touched a high of $17.75.
(Reporting by Bijoy Koyitty in Bangalore; Editing by Sreejiraj Eluvangal)
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