WICHITA, Kan., Dec. 9, 2014 /PRNewswire/ -- Spirit
AeroSystems Inc. [NYSE: SPR] has reached an agreement to transfer
the Gulfstream wing work packages at Spirit's facility in
Tulsa, Oklahoma, to Triumph Group,
Inc. The transfer includes both the G650 and G280 wing
programs.
"The Triumph Group emerged as the preferred owner of the
Gulfstream wing programs following a rigorous bid process, and the
deal offers compelling positives for both companies," said Spirit
AeroSystems President & CEO Larry
Lawson. "We thoroughly evaluated all of our options and made
the best decision for the company, our people and our
customers.
"This transfer continues Spirit's transformation and allows us
to further focus on our core markets of aerostructures for
commercial and defense aircraft. We wish Triumph great success, and
we are working closely with them to make this transition smooth for
Gulfstream, the employees and the Tulsa community."
Spirit employees who are currently working on the Gulfstream
programs will be offered positions with Triumph.
"As for the other Tulsa
programs, we are taking a pause in the process to evaluate the
remaining work," said Lawson. "There are a number of factors to
take into consideration, including exploring our options within the
community and with other constituents who have approached us. We
won't rush the evaluation and will provide an update as soon as we
are ready."
Subject to customary closing conditions, the transaction is
expected to close in 2014. The agreement provides for Spirit to
make a cash payment to Triumph at closing in the amount of
$160 million. The transaction is an
estimated loss in the range of $205 million
to $235 million ($1.45 to
$1.65 per diluted share).
The Company estimates that the transaction will generate a cash
tax benefit of approximately $220 million to
$230 million which, if the closing occurs in 2014, will be
fully realized in 2014 and 2015, with an overall favorable cash
result of the transaction, including estimated closing costs,
realized in the same period in the range of $55 million to $65 million.
Spirit's 2014 full year financial guidance, which was updated
last quarter, of $6.8 - $6.9 billion
in revenue, $3.35 - $3.45 earnings
per share, and approximately $275
million in free cash flow, excludes the financial impact of
the work transfer and the impact of the deferred tax asset
valuation release as a result of this transaction.
On the Web: www.spiritaero.com
On Twitter: @SpiritAero
About Spirit AeroSystems Inc.
Spirit AeroSystems,
with headquarters in Wichita,
Kansas, USA, is one of the world's largest
non-OEM designers and manufacturers of aerostructures
for commercial aircraft. In addition to its Wichita and Chanute facilities in Kansas, Spirit has locations in Tulsa and McAlester,
Oklahoma; Kinston, North
Carolina; Nashville,
Tennessee; Prestwick, Scotland; Preston,
England; Subang, Malaysia;
and Saint-Nazaire, France. In the
U.S., Spirit's core products include fuselages, pylons, nacelles
and wing components. Additionally, Spirit provides aftermarket
customer support services, including spare parts,
maintenance/repair/overhaul, and fleet support services in
North America, Europe and Asia. Spirit Europe produces wing components for a host of
customers, including Airbus.
Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995:
This press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These
forward-looking statements include, but are not limited to,
statements related to the transfer of the Gulfstream work packages
performed in Tulsa, Oklahoma.
These forward-looking statements involve known and unknown risks,
uncertainties and other factors discussed in the Company's filings
with the SEC. Any forward-looking statements speak
only as of the date of this press release and, except to the extent
required by applicable securities laws, Spirit AeroSystems
Holdings, Inc. expressly disclaims any obligation to update or
revise any of them to reflect actual results, any changes in
expectations or any change in events. If Spirit AeroSystems
Holdings, Inc. does update one or more forward-looking statements,
no inference should be drawn that it will make additional updates
with respect to those or other forward-looking statements. For
additional information concerning risks, uncertainties and other
factors that may cause actual results to differ from those
anticipated in the forward-looking statements, and risks to Spirit
AeroSystems Holdings, Inc.'s business in general, please refer to
the Company's SEC filings.
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SOURCE Spirit AeroSystems Inc.