WICHITA, Kan., Oct. 11, 2017 /CNW/ -- At its Investor Day
Sept. 27, Spirit AeroSystems
(NYSE:SPR) unveiled plans to grow in two key areas: Fabrication and
Defense, each of which is expected to exceed $1 billion over the next five years.
Fabrication. Spirit is already one of the largest
manufacturers of machined parts in the world, producing more than
38,000 unique parts to support its current aerostructures
business.
"There is a huge market for these detailed parts, delivering
them directly to original equipment manufacturers," said Spirit
President and CEO Tom Gentile.
"Fabrication is a good margin business where Spirit has unmatched
capability and capacity for both commercial and defense
customers."
The company has developed centers of excellence in Wichita for five-axis complex parts and
chemical processing. The company also has established a three- and
four-axis center of excellence at its McAlester, Okla., facility and is expanding
its Malaysia site where it does
complex assemblies. Spirit anticipates developing a $1 billion annual business within the next five
years by insourcing parts, supplying other tier-one suppliers and
expanding business with Spirit's current commercial and military
customers. Spirit has named Kevin
Matthies as senior vice president of Global Fabrication,
reporting to Ron Rabe, senior vice
president of Fabrication and Supply Chain. Kevin will work
closely with Alan Young, vice
president of Wichita Fabrication, to grow the new business.
Defense. Currently, Spirit is supporting the
Lockheed/Sikorsky CH-53K helicopter, the Bell Helicopter V-280, the
Boeing KC-46A (a military derivative of the 767), the Boeing P-8A
(a military derivative of the 737), and has been named as a
supplier on the Northrop Grumman B-21 Raider program. Spirit's
defense organization is expected to be a $1
billion annual business within the next five years and
account for about 10-15 percent of Spirit's revenue.
"Spirit Defense has a very strong value proposition for defense
contractors," said Gentile. "Our costs are lower, we have
commercial best practices we can apply and we have design-build
capabilities that many of our competitors do not have."
Spirit has appointed industry veteran Krisstie Kondrotis as senior vice president of
Defense Programs and Business Development, reporting to
Duane Hawkins, senior vice
president/GM Boeing, Defense, Business/Regional Jet Programs and
Global Customer Support.
"The launch of these two new business units and the appointment
of Kevin and Krisstie will allow more focus on Spirit's strategic
initiatives in Global Fabrication and Defense," said Gentile. "It
reflects our determination to achieve the next level of performance
as the world's premier aerostructures company and to be a trusted
partner to the industry."
On the web: www.spiritaero.com/support-services
On Twitter: @SpiritAero
About Spirit AeroSystems
Spirit AeroSystems designs and builds aerostructures for both
commercial and defense customers. With headquarters
in Wichita, Kansas, Spirit
operates sites in the U.S., U.K., France and Malaysia. The company's core products include
fuselages, pylons, nacelles and wing components for the world's
premier aircraft. Spirit AeroSystems focuses
on affordable, innovative composite and aluminum
manufacturing solutions to support customers around the globe. More
information is available
at www.spiritaero.com.
This press release contains "forward-looking statements" that
may involve many risks and uncertainties. Forward-looking
statements reflect our current expectations or forecasts of future
events. Forward-looking statements generally can be identified by
the use of forward-looking terminology such as "aim," "anticipate,"
"believe," "could," "continue," "estimate," "expect," "goal,"
"forecast," "intend," "may," "might," "objective," "plan,"
"predict," "project," "should," "target," "will," "would," and
other similar words, or phrases, or the negative thereof, unless
the context requires otherwise. These statements reflect
management's current views with respect to future events and are
subject to risks and uncertainties, both known and unknown. Our
actual results may vary materially from those anticipated in
forward-looking statements. We caution investors not to place undue
reliance on any forward-looking statements. Important factors that
could cause actual results to differ materially from those
reflected in such forward-looking statements and that should be
considered in evaluating our outlook include, but are not limited
to, the following: 1) our ability to continue to grow our business
and execute our growth strategy, including the timing, execution,
and profitability of new and maturing programs; 2) our ability to
perform our obligations under our new and maturing commercial,
business aircraft, and military development programs, and the
related recurring production; 3) our ability to accurately estimate
and manage performance, cost, and revenue under our contracts,
including our ability to achieve certain cost reductions with
respect to the 787 program; 4) margin pressures and the potential
for additional forward losses on new and maturing programs; 5) our
ability to accommodate, and the cost of accommodating, announced
increases in the build rates of certain aircraft; 6) the effect on
aircraft demand and build rates of changing customer preferences
for business aircraft, including the effect of global economic
conditions on the business aircraft market and expanding conflicts
or political unrest in the Middle
East or Asia; 7) customer
cancellations or deferrals as a result of global economic
uncertainty or otherwise; 8) the effect of economic conditions in
the industries and markets in which we operate in the U.S. and
globally and any changes therein, including fluctuations in foreign
currency exchange rates; 9) the success and timely execution of key
milestones such as the receipt of necessary regulatory approvals
and customer adherence to their announced schedules; 10) our
ability to successfully negotiate, or re-negotiate, future pricing
under our supply agreements with Boeing and our other customers;
11) our ability to enter into profitable supply arrangements with
additional customers; 12) the ability of all parties to satisfy
their performance requirements under existing supply contracts with
our two major customers, Boeing and Airbus, and other customers,
and the risk of nonpayment by such customers; 13) any adverse
impact on Boeing's and Airbus' production of aircraft resulting
from cancellations, deferrals, or reduced orders by their customers
or from labor disputes or acts of terrorism; 14) any adverse impact
on the demand for air travel or our operations from the outbreak of
diseases or epidemic or pandemic outbreaks; 15) our ability to
avoid or recover from cyber-based or other security attacks,
information technology failures, or other disruptions; 16) returns
on pension plan assets and the impact of future discount rate
changes on pension obligations; 17) our ability to borrow
additional funds or refinance debt; 18) competition from commercial
aerospace original equipment manufacturers and other aerostructures
suppliers; 19) the effect of governmental laws, such as U.S. export
control laws and U.S. and foreign anti-bribery laws such as the
Foreign Corrupt Practices Act and the United Kingdom Bribery Act,
and environmental laws and agency regulations, both in the U.S. and
abroad; 20) the effect of potential changes in tax law, such as
those outlined in recent proposals on U.S. tax reform; 21) any
reduction in our credit ratings; 22) our dependence on our
suppliers, as well as the cost and availability of raw materials
and purchased components; 23) our ability to recruit and retain
highly-skilled employees and our relationships with the unions
representing many of our employees; 24) spending by the U.S. and
other governments on defense; 25) the possibility that our cash
flows and borrowing facility may not be adequate for our additional
capital needs or for payment of interest on, and principal of, our
indebtedness; 26) our exposure under our existing senior revolving
credit facility to higher interest payments should interest rates
increase substantially; 27) the effectiveness of any interest rate
hedging programs; 28) the effectiveness of our internal control
over financial reporting; 29) the outcome or impact of ongoing or
future litigation, claims, and regulatory actions; and 30) exposure
to potential product liability and warranty claims. These factors
are not exhaustive and it is not possible for us to predict all
factors that could cause actual results to differ materially from
those reflected in our forward-looking statements. These factors
speak only as of the date hereof, and new factors may emerge or
changes to the foregoing factors may occur that could impact our
business. As with any projection or forecast, these statements are
inherently susceptible to uncertainty and changes in circumstances.
Except to the extent required by law, we undertake no obligation
to, and expressly disclaim any obligation to, publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise. Additional information
concerning these and other factors can be found in our filings with
the Securities and Exchange Commission, including our most recent
Annual Report on Form 10-K and Quarterly Reports on Form
10-Q.
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SOURCE Spirit AeroSystems