Spirit AeroSystems reports loss due to Boeing 787 charge
Feb 6 (Reuters) - Spirit AeroSystems Holdings Inc, a major supplier of components to Boeing Co and Airbus , reported a loss for the fourth quarter, partly due to a $546 million pre-tax charge related to its Boeing 787 program.
Spirit's shares fell as much as 17 percent after it also forecast 2014 earnings below the average analyst estimate.
The company, which makes the fuselage for the Boeing 787 Dreamliner, has not been able to take advantage of booming demand for commercial aircraft as it grapples with high costs.
Costs spiraled for Spirit, spun off from Boeing in 2005, when the company started supplying parts for business jets along with commercial planes.
The company's Oklahoma operations, which handle wing design for Gulfstream jets, have run up more than $1 billion in costs since October 2012. The company is looking for a buyer for the operations.
Spirit said on Thursday that the charge is to cancel out certain expected forward losses related to Boeing's 787 program - an agreement to settle claims associated with the production of the Dreamliner.
"The charges taken here along with those taken previously are a sign that cash flow should remain pressured for years to come," J.P. Morgan Securities analyst Joseph Nadol wrote in a note to clients.
Spirit said it expects 2014 earnings of $2.50-$2.65 per share.
Analysts on average expected earnings of $2.68 per share, according to Thomson Reuters I/B/E/S.
Spirit reported a net loss of $587 million, or $4.15 per share, in the fourth quarter, compared with a profit of $61 million, or 43 cents per share, a year earlier.
Revenue rose 5 percent to $1.49 billion.
Spirit shares were down at $27.70 in morning trade on the New York Stock Exchange. (Reporting by Sagarika Jaisinghani in Bangalore; Editing by Sriraj Kalluvila)
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