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Spirit AeroSystems Holdings Q4 revenues were $1.6 billion

Staff writer |
Spirit AeroSystems Holdings, Inc. reported fourth quarter and full-year 2014 financial results driven by strong mature program operating performance.

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Spirit's fourth quarter 2014 revenues were $1.6 billion, up from $1.5 billion for the same period of 2013. Operating loss for the fourth quarter of 2014 was ($273) million compared to operating loss of ($321) million in the fourth quarter of 2013. Net loss for the quarter was ($106) million, or ($0.77) per share, compared to net loss of ($587) million, or ($4.15) per share, in the same period of 2013.

The current quarter includes a pretax charge of ($471) million, or ($1.42) per share, for the divestiture of Gulfstream programs and ($30) million, or ($0.22) per share, negative impact for deferred tax asset valuation allowance not associated with the Gulfstream programs. This is compared to pretax ($546) million of forward loss charges in the same period of 2013, and a ($381) million negative impact due to the establishment of a valuation allowance against U.S. net deferred tax assets.

Revenue for the full-year 2014 increased 14 percent to $6.8 billion. Operating income for the full-year was $354 million compared to operating loss of ($364) million for the prior year. Full-year net income was $359 million, or $2.53 per share, compared to net loss of ($621) million, or ($4.40) per share in 2013.

Spirit's backlog at the end of the fourth quarter of 2014 increased by approximately 7 percent from the previous quarter to a record $47 billion as orders exceeded deliveries. Spirit updated its contract profitability estimates during the fourth quarter of 2014 resulting in pretax $63 million, or $0.31 per share, favorable cumulative catch-up adjustments on mature programs due to improved performance and reduced risks.

Additionally, the company recorded reversal of forward loss charges of $27 million on the BR725, 767 and 747-8 programs combined. In comparison, Spirit recorded pretax ($546) million forward losses and pretax $51 million favorable cumulative catch-up adjustments in the fourth quarter of 2013.

Adjusted free cash flow from operations was a $107 million source of cash for the fourth quarter of 2014, compared to a $6 million source of cash in the fourth quarter of 2013 due to greater reduction in accounts receivable partially offset by higher cash tax payments. Adjusted full-year free cash flow was a $302 million source of cash compared to a $57 million source of cash in 2013.


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