August 1, 2018 / 11:47 AM / 3 months ago

Spirit Aero profit beats estimate on higher deliveries to planemakers

(Reuters) - Spirit AeroSystems Holdings Inc’s (SPR.N) quarterly profit beat Wall Street estimates on Wednesday, boosted by higher deliveries of aircraft parts to top customers Boeing Co (BA.N) and France’s Airbus SE (AIR.PA).

Spirit said ship-set deliveries — or complete sets of parts for each aircraft — to Airbus Group SE (AIR.PA) rose 2.5 percent to 203 units in the second quarter ended June 28.

Ship-set deliveries to Boeing, its biggest customer, jumped 14 percent to 228 units during the quarter.

Wichita, Kansas-based Spirit, which makes some 70 percent of the structure of the world’s most-sold commercial plane, 737, is enjoying robust demand from its top customers on the back of booming demand for air travel.

But, it had faced disruptions in its own supply chain as parts makers scrambled to meet the soaring demand.

“We were focused on recovering delivery commitments to our customers and made good progress on that,” Chief Executive Officer Tom Gentile said, adding that the company expected to see further improvement in the second half of the year.

The company reaffirmed its full-year adjusted earnings forecast of $6.25-$6.50 per share and revenue of $7.1 billion-$7.2 billion.

The company reported net income of $145.2 million, or $1.31 per share in the quarter, compared with a loss of $56.8 million, or 48 cents per share per share, a year earlier.

The company had recorded a charge related to Boeing, a year earlier.

On an adjusted basis, Spirit earned $1.63 a share, beating analysts’ estimate of $1.52, according to Thomson Reuters I/B/E/S.

Revenue rose slightly to $1.84 billion compared with analysts’ estimate of $1.83 billion.

Reporting by Arunima Banerjee in Bengaluru; Editing by Shailesh Kuber

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