* Third quarter revenues grew 17 percent to $968 million; Operating earnings grew to $107 million WICHITA, Kan., Nov. 1 /PRNewswire-FirstCall/ -- Spirit AeroSystems Holdings, Inc. [NYSE: SPR] reported increases in its third quarter financial results and updated its 2007 financial guidance and provided 2008 guidance, citing strong global commercial aerospace markets and improved operational efficiencies. Table 1. Summary Financial Results ($'s in Millions, except per 3rd Quarter Nine Months share data) 2007 2006 Change 2007 2006 Change Revenues $968 $830 17% $2,880 $2,356 22% Operating Income $107 $78 38% $313 $184 70% Operating Income as a % of Revenues 11.0% 9.3% 170 BPS 10.8% 7.8% 300 BPS Net Income $84 $34 146% $221 $86 157% Net Income as a % of Revenues 8.6% 4.1% 450 BPS 7.7% 3.7% 400 BPS Earnings per Share (Fully diluted) $0.60 $0.28 114% $1.59 $0.71 124% Fully Diluted Weighted Avg Share Count (Million) 139.5 121.2 139.2 121.7 Spirit's third quarter net income rose 146 percent to $84 million from $34 million a year ago, and fully diluted earnings per share rose 114 percent to $0.60 per share from $0.28 per share last year. (Table 1) The company benefited from a lower effective tax rate during the third quarter 2007. The lower tax rate contributed $0.09 of diluted earnings per share to the third quarter results. Revenue for the quarter increased 17 percent to $968 million from $830 million, and the company's operating margins rose to 11.0 percent from 9.3 percent last year. "Strong operating performance continues across the company while we execute our key development programs and pursue new business opportunities," said President and Chief Executive Officer Jeff Turner. "Executing our backlog of over twenty-three billion dollars remains our top near-term opportunity to grow profitability and expand operating margins," Turner added. "The recent delays on the 787 program, while disappointing, represent a short- term challenge for an enormously successful product that will deliver long- term value to customers and shareholders," Turner continued. "Additionally, we are pleased to be named to Boeing's P-8A Poseidon team this quarter. The U.S. Navy's P-8A program is another example of the value the 737 Next Generation aircraft brings to customers and demonstrates, yet again, the adaptability of the airframe for both commercial and military applications. Looking forward, we will continue to invest in key growth programs and diversification while improving our financial performance." Spirit's backlog during the quarter increased from $21.8 billion to $23.5 billion, as combined net orders for 528 aircraft at Boeing and Airbus outpaced their combined deliveries of 208 aircraft. Spirit's backlog is calculated based on contractual prices for products and expected delivery volumes from the published firm order backlogs of both Boeing and Airbus. Spirit updated its contract profitability estimates during the third quarter of 2007, which resulted in no net changes to contract estimates. Third quarter 2006 results included a $17 million favorable cumulative catch- up adjustment. Cash flow from operations for the third quarter was $42 million, despite increases in inventory on the 787 program and other development programs. Investments in capital expenditures totaled $69 million in the quarter. Half of the investment in property, plant and equipment supported the start-up of the 787 program. Cash balances at the end of the quarter were $105 million, down $22 million from the end of the second quarter 2007, reflecting planned investment in Spirit's core business, primarily for the 787 program. Debt balances at the end of the third quarter were $605 million, down slightly from second quarter levels. (Table 2) Table 2. Cash Flow and Liquidity 3rd Quarter Nine Months ($'s in Millions) 2007 2006 2007 2006 Cash Flow from Operations $42 $113 $107 $326 Purchases of Property, Plant & Equipment ($69) ($53) ($228) ($233) As of As of Sept 27, Dec 31, Liquidity 2007 2006 Cash $105 $184 Current Portion of Long-term Debt plus Long-term Debt $605 $618 Financial Outlook The company's financial guidance for 2007 is updated and 2008 guidance is provided incorporating the benefit of higher production volumes on large commercial aircraft programs. The company is forecasting approximately 18 to 20 percent growth in revenues in 2008 and increasing operating margins from year-to-year reflecting the company's solid operating performance across business segments. Guidance for 2007 reflects a lower effective tax rate consistent with reported results as of nine months ending September 27, 2007. Financial guidance for 2007 and 2008 incorporates 787 program schedule changes resulting from the delay of aircraft certification and entry into service announced by The Boeing Company on October 10, 2007. Table 3 summarizes the company's financial outlook. Table 3. Financial Outlook 2007 Guidance 2008 Guidance Revenues $3.9B - $4.0B ~$4.7B Operating Income $415M - $425M Operating Income as a % of Revenues 10.4% - 10.8% Depreciation and Amortization $115M - $120M Earnings Per Share (Fully Diluted) $2.10 - $2.15 $2.30 - $2.40 Effective Tax Rate + / - 29.5% 33% - 34% Cash Flow from Operations* + / - $250M Capital Expenditures + / - $300M Customer Reimbursement of Capital Expenditures ~$45M Average Fully Diluted Shares Outstanding 139.5M - 140.0M * Includes $40-$50 million of customer advances for capital expenditures 2007 Outlook Spirit's 2007 revenue expectations are now expected to be between $3.9 and $4.0 billion, or approximately 23 percent higher than 2006. The new guidance is a change from the previous guidance range of between $4.0 and $4.1 billion. The 2007 revenue projection is based on previously issued 2007 Boeing and Airbus delivery guidance of 440 and 440-450 aircraft, respectively, and includes fewer initial deliveries of Spirit products to Boeing on the 787 program. Spirit's 2007 operating margins are now expected to be in the range of 10.4 to 10.8 percent, and 2007 fully diluted EPS guidance is increased to between $2.10 and $2.15 per share as benefits from cost reductions, productivity initiatives and a lower than expected effective tax rate improve profitability. 2007 cash flow from operations is now expected to be +/- $250 million which includes working capital spending for the new 787 program. Fiscal 2007 capital expenditures are unchanged and are expected to be +/- $300 million. Approximately 50 percent of the capital expenditures will be utilized for the installation of production capacity for the new 787 program. Spirit anticipates approximately $45 million of customer reimbursement to partially offset these capital expenditures. 2007 Depreciation and Amortization expenses are unchanged and forecasted to be between $115 and $120 million, while 2007 Research and Development expense is expected to be approximately $55 to $60 million. SG&A expense for 2007 is now expected to be approximately $195 to $200 million. 2008 Outlook Spirit's 2008 revenue is expected to be approximately $4.7 billion, or 18 to 20 percent higher than 2007 revenues. The 2008 revenue projection is based on previously issued 2008 Boeing delivery guidance of 480-490 aircraft and includes internal Spirit forecasts for Airbus and other products. Spirit's revenue guidance for 2008 assumes delivery of approximately forty-five 787 ship sets from Spirit to Boeing based on aircraft certification and entry into service occurring during the fourth quarter 2008. A reduction in Spirit's 2008 787 ship set delivery forecast would likely result in lower than forecasted revenues and earnings for the year. Earnings per share for 2008 is expected to be between $2.30 and $2.40 per share as increased volumes on large commercial aircraft programs and improved operating efficiencies increase profitability. Cash from Operations and Capital Expenditure guidance will be provided when the company reports fourth quarter and full-year 2007 results in early February 2008. Cautionary Statement Regarding Forward-Looking Statements This press release includes forward-looking statements that reflect the plans and expectations of Spirit AeroSystems Holdings, Inc. To the extent that statements in this press release do not relate to historical or current facts, they constitute forward-looking statements. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "project," "continue," or other similar words. These statements reflect Spirit AeroSystems Holdings, Inc.'s current view with respect to future events and are subject to risks and uncertainties, both known and unknown. Such risks and uncertainties may cause the actual results of Spirit AeroSystems Holdings, Inc. to vary materially from those anticipated in forward-looking statements, and therefore we caution investors not to place undue reliance on them. Potential risks and uncertainties include, but are not limited to: our customers' aircraft build rates; the ability to enter into supply arrangements with additional customers and satisfy performance requirements under existing contracts; any adverse impact on our customers' production of aircraft; the success and timely progression of our customers' new programs including, but not limited to The Boeing Company's 787 aircraft program; future levels of business in the aerospace and commercial transport industries; competition from original equipment manufacturers and other aerostructures suppliers; the effect of governmental laws; the effect of new commercial and business aircraft development programs; the cost and availability of raw materials; the ability to recruit and retain highly skilled employees and relationships with unions; spending by the United States and other governments on defense; the continuing ability to operate successfully as a stand alone company; the outcome of ongoing or future litigation and regulatory actions; and exposure to potential product liability claims. Additional information as to factors that may cause actual results to differ materially from our forward-looking statements can be found in Spirit AeroSystems Holdings, Inc.'s filings with the United States Securities and Exchange Commission. Spirit AeroSystems Holdings, Inc. undertakes no obligation and does not intend to update publicly any forward-looking statements after the date of this press release, except as required by law. Appendix Segment Results Fuselage Systems Fuselage Systems segment revenue for the third quarter was $434 million, up 7 percent over the same period last year as deliveries on the 747 and 777 programs increased. Fuselage Systems posted segment operating margins of 18.0 percent during the third quarter 2007, down from 20.4 percent in the same period of 2006. A favorable cumulative catch-up adjustment of $9 million was recognized in the segment for the third quarter of 2006. Propulsion Systems Propulsion Systems segment revenue for the third quarter was $279 million, up 23 percent over the same period last year as deliveries increased in support of primary customer production volume. Propulsion Systems posted segment operating margins of 16.5 percent for the third quarter 2007, down from 18.2 percent in the same period of 2006. A favorable cumulative catch-up adjustment of $7 million was recognized in the segment for the third quarter of 2006. Wing Systems Wing Systems segment revenue for the third quarter was $252 million, up 31 percent over the same period last year as deliveries increased in support of primary customer production volume. Wing Systems posted segment operating margins of 9.3 percent for the third quarter 2007, up from 6.0 percent in the same period of 2006 as R&D expense on the 787 program declined. A favorable cumulative catch-up adjustment of $1 million was recognized in the segment for the third quarter of 2006. Table 4. Segment Reporting 3rd Quarter Nine Months ($'s in Millions, except margin percent) 2007 2006 Change 2007 2006(1) Change Segment Revenues Fuselage Systems $434.3 $405.9 7.0% $1,329.2 $1,174.1 13.2% Propulsion Systems $278.9 $227.1 22.8% $798.5 $668.8 19.4% Wing Systems $251.5 $192.2 30.9% $738.1 $491.3 50.2% All Other $2.8 $4.5 (37.8%) $14.6 $21.7 (32.7%) Total Segment Revenues $967.5 $829.7 16.6% $2,880.4 $2,355.9 22.3% Segment Earnings from Operations Fuselage Systems $78.1 $82.8 (5.7%) $243.2 $208.3 16.8% Propulsion Systems $45.9 $41.3 11.1% $130.2 $100.4 29.7% Wing Systems $23.5 $11.6 102.6% $75.1 $30.6 145.4% All Other $0.3 $1.2 (75.0%) $1.8 $3.3 (45.5%) Total Segment Operating Earnings $147.8 $136.9 8.0% $450.3 $342.6 31.4% Unallocated Corporate SG&A Expense ($39.9) ($57.9) 31.1% ($134.3) ($154.6) 13.1% Unallocated Research & Development Expense ($1.3) ($1.5) 13.3% ($3.5) ($3.9) 10.3% Total Earnings from Operations $106.6 $77.5 37.5% $312.5 $184.1 69.7% Segment Operating Earnings as % of Revenues Fuselage Systems 18.0% 20.4% (240) BPS 18.3% 17.7% 60 BPS Propulsion Systems 16.5% 18.2% (170) BPS 16.3% 15.0% 130 BPS Wing Systems 9.3% 6.0% 330 BPS 10.2% 6.2% 390 BPS All Other 10.7% 26.7% (1600) BPS 12.3% 15.2% (290) BPS Total Segment Operating Earnings as % of Revenues 15.3% 16.5% (120) BPS 15.6% 14.5% 110 BPS Total Operating Earnings as % of Revenues 11.0% 9.3% 170 BPS 10.8% 7.8% 300 BPS (1) Includes Spirit Europe since acquisition on April 1, 2006 Spirit Ship Set Deliveries (BASED ON FUSELAGE DELIVERIES) 2006 Spirit AeroSystems Deliveries 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total 06 B737 64 77 84 77 302 B747 3 3 3 4 13 B767 3 3 3 3 12 B777 14 16 16 19 65 Total 84 99 106 103 392 A320 0 81 74 86 241 A330/340 0 33 17 23 73 A380 0 4 0 0 4 Total(1) 0 118 91 109 318 Hawker 850XP(1) 0 12 15 24 51 Total Spirit 84 229 212 236 761 (1) Deliveries associated with Airbus and Hawker products were acquired with Spirit Europe on April 1, 2006. 2007 Spirit AeroSystems Deliveries 1st Qtr 2nd Qtr 3rd Qtr B737 83 85 84 B747 5 4 5 B767 3 4 3 B777 21 21 21 B787 0 1 0 Total 112 115 113 A320 93 84 91 A330/340 22 21 22 A380 0 0 2 Total 115 105 115 Hawker 850XP 16 15 17 Total Spirit 243 235 245 Spirit AeroSystems Holdings, Inc. Condensed Consolidated Statements of Operations (unaudited) For the Three For the Nine Months Ended Months Ended September September September September 27, 28, 27, 28, 2007 2006 2007 2006 ($ in millions, except per share data) Net Revenues $967.5 $829.7 $2,880.4 $2,355.9 Operating costs and expenses: Cost of sales 804.7 677.7 2,388.2 1,926.7 Selling, general and administrative 42.9 59.9 142.3 160.0 Research and development 13.3 14.6 37.4 85.1 Total Costs and Expenses 860.9 752.2 2,567.9 2,171.8 Operating Income 106.6 77.5 312.5 184.1 Interest expense and financing fee amortization (9.7) (11.9) (28.1) (34.8) Interest income 8.0 6.9 22.8 20.9 Other income, net 1.3 0.7 5.1 3.6 Income From Continuing Operations Before Income Taxes 106.2 73.2 312.3 173.8 Income tax provision (22.6) (39.2) (90.9) (87.6) Net Income $83.6 $34.0 $221.4 $86.2 Earnings per share Basic $0.61 $0.30 $1.65 $0.76 Shares 136.7 114.0 133.8 113.9 Diluted $0.60 $0.28 $1.59 $0.71 Shares 139.5 121.2 139.2 121.7 Spirit AeroSystems Holdings, Inc. Condensed Consolidated Balance Sheets September 27, December 31, 2007 2006 (unaudited) ($ in millions) Current assets Cash and cash equivalents $105.4 $184.3 Accounts receivable, net 247.2 200.2 Other receivable 92.3 43.0 Inventory, net 1,198.4 882.2 Prepaid expenses 14.8 20.8 Income tax receivable - 21.7 Other current assets 59.6 68.3 Total current assets 1,717.7 1,420.5 Property, plant and equipment, net 937.7 773.8 Long-term receivable 141.0 191.5 Pension assets 231.5 207.3 Other assets 138.1 129.1 Total assets $3,166.0 $2,722.2 Current liabilities Accounts payable $374.9 $339.1 Accrued expenses 229.2 198.5 Current portion of long-term debt 22.8 23.9 Other current liabilities 19.8 8.2 Total current liabilities 646.7 569.7 Long-term debt 582.5 594.3 Advance payments 638.5 587.4 Pension obligation 56.6 53.7 Other liabilities 101.7 58.1 Shareholders' equity Preferred stock, par value $0.01, 10,000,000 shares authorized, no shares issued and outstanding - - Common stock, Class A par value $0.01, 200,000,000 shares authorized, 102,563,955 and 63,345,834 issued and outstanding, respectively 1.0 0.6 Common stock, Class B par value $0.01, 150,000,000 shares authorized, 36,890,084 and 71,351,347 shares issued and outstanding, respectively 0.4 0.7 Additional paid-in capital 917.2 858.7 Accumulated other comprehensive income 74.0 72.5 Retained earnings / (deficit) 147.4 (73.5) Total shareholders' equity 1,140.0 859.0 Total liabilities and shareholders' equity $3,166.0 $2,722.2 Spirit AeroSystems Holdings, Inc. Condensed Consolidated Statements of Cash Flow (unaudited) For the Nine For the Nine Months Ended Months Ended September 27, September 28, 2007 2006 ($ in millions) Operating activities Net income $221.4 $86.2 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense 67.1 30.3 Amortization expense 5.7 6.2 Accretion of long-term receivable (16.0) (15.3) Employee stock compensation expense 26.8 40.8 Excess tax benefits from share- based payment arrangements (32.9) - Loss on disposition of assets 0.4 - Deferred taxes 3.8 - Changes in assets and liabilities, net of acquisition Accounts receivable (48.0) (63.2) Inventory, net (312.6) (171.5) Other current assets 6.1 (6.1) Accounts payable and accrued liabilities 18.7 142.0 Customer advances 93.6 300.0 Deferred revenue and other deferred credits 36.4 - Other 36.1 (23.7) Net cash provided by operating activities 106.6 325.7 Investing Activities Purchase of property, plant and equipment (228.0) (233.4) Proceeds from sale of assets 0.2 - Acquisition of business, net of cash required - (135.4) Long-term receivable 22.8 - Financial derivatives 3.1 3.1 Other (1.3) - Net cash (used in) investing activities (203.2) (365.7) Financing Activities Principal payments of debt (14.4) (10.2) Excess tax benefits from share-based payment arrangements 32.9 - Equity issuance costs - (3.4) Executive stock investments/(repurchases) (1.0) 1.1 Net cash provided by (used in) financing activities 17.5 (12.5) Effect of exchange rate changes on cash and cash equivalents 0.2 0.2 Net (decrease) in cash and cash equivalents for the period (78.9) (52.3) Cash and cash equivalents, beginning of the period 184.3 241.3 Cash and cash equivalents, end of the period $105.4 $189.0 DATASOURCE: Spirit AeroSystems Holdings, Inc. CONTACT: Investor Relations, Phil Anderson, +1-316-523-1797, or Media, Debbie Gann, +1-316-519-7340, both of Spirit AeroSystems Holdings, Inc.

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