Spirit Aerosystems Tumbles Most in 15 Months on Earnings Loss

Feb 06, 2014 5:02 pm ET

Feb. 6 (Bloomberg) -- Spirit Aerosystems, which supplies and makes parts for Boeing Co. and Airbus Group NV, plunged after reporting a net loss in the fourth quarter due to costs related to its Dreamliner program and a reduced value of potential tax benefits.

Shares tumbled 20 percent to $26.51 in New York, the biggest decline since October 2012. In the past year through yesterday, the shares had more than doubled, compared with a 16 percent rise in the Standard & Poor’s 500 Index.

The company reported a net loss of $587 million, or $4.15 a share, compared with net income of $61 million, or 43 cents, a year earlier. Revenue at the Wichita, Kansas-based company was $1.49 billion, lower than analysts’ estimate of $1.55 billion.

The fourth quarter included a $381 million charge because of deferred tax assets and a net pretax charge of $546 million mainly related to its 787 program. Spirit makes components for all of Boeing’s current lineup of commercial jets, including the 787 Dreamliner.

“Although the magnitude of the program charges recorded during the quarter was stunning, we believe there is a definite plan to kill risk,” Howard Rubel, an analyst at Jefferies LLC. wrote in a note to clients. He rates the shares buy.

For 2014, Spirit said it expects revenue of $6.5 billion to $6.7 billion and earnings per share of $2.50 to $2.65.

--Editors: Molly Schuetz, John Lear