WICHITA, Kan., May 1, 2020 /PRNewswire/ -- Spirit AeroSystems
[NYSE: SPR] announced today it will reduce employment at sites
supporting commercial programs a result of lower demand for
commercial airplanes. Spirit is a supplier to Airbus and Boeing,
both of which announced lower production rates for commercial
aircraft due to the impact of COVID-19 on the aviation
industry.
"Our actions follow reduced demand from our customers, who have
lowered production rates as demand for new airplanes declines due
to the impact of COVID-19," said Tom
Gentile, President and CEO, Spirit AeroSystems. "In addition
to reducing employment, we are taking other initiatives to lower
costs and preserve liquidity, which included raising $1.2 billion in high yield secured second lien
bonds in April. We are focused on ensuring Spirit AeroSystems
remains a healthy business and emerges from this crisis with a
bright future."
As part of the overall employment reductions, Spirit offered a
voluntary layoff to union represented employees in Wichita, Kan. earlier this week. Today Spirit
issued a notice to the State of
Kansas under the Worker Adjustment and Retraining
Notification (WARN) Act of layoffs affecting approximately 1,450
hourly and salaried employees at its site in Wichita. Spirit's Wichita employees affected by these layoffs
are expected to begin exiting the company May 15. Later this
month, smaller reductions will occur at Spirit's remaining U.S.
sites that perform commercial work. Spirit's global sites are
reviewing workforce requirements and will announce their plans in
the coming weeks.
As Spirit continues to respond to the COVID-19 pandemic by
changing its work practices to keep employees safe, the company is
also working directly to contribute to the fight against COVID-19.
Spirit has developed a partnership to manufacture medical devices
in Wichita. Approximately 700
employees will be transferred to this temporary special project
that is expected to last through October and may go longer,
depending upon demand. Spirit will have more information to share
on the medical device partnership in the near future.
Spirit's work on defense programs will not be impacted by these
announced employment reductions and those operations will continue
uninterrupted. Additionally, some employees currently supporting
commercial programs may be transferred to available defense work,
mitigating the number of employees who may be affected by these
workforce actions.
"While we are faced with difficult decisions during this
unprecedented time in our industry, we remain focused on
maintaining operations to support our customers, including the
critical work we do on national security programs," Gentile said.
"I remain confident in the future of the aviation industry and
believe in our ability as a company to weather this pandemic and
emerge stronger."
On the web: www.spiritaero.com
On Twitter: @SpiritAero
About Spirit AeroSystems Inc.
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.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" that
may involve many risks and uncertainties. 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," "outlook," "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, without limitation,
the timing and conditions surrounding the return to service of the
737 MAX and any related impacts on our production rate; our
reliance on Boeing for a significant portion of our revenues; our
ability to execute our growth strategy, including our ability to
timely complete and integrate our announced Asco and Bombardier
acquisitions; our ability to accurately estimate and manage
performance, cost, and revenue under our contracts; demand for our
products and services and the effect of economic or geopolitical
conditions in the industries and markets in which we operate in the
U.S. and globally; our ability to manage our liquidity, borrow
additional funds or refinance debt; the impact of the COVID-19
pandemic on our business and operations, including on the demand
for our and our customers' products and services, on trade and
transport restrictions, on the global aerospace supply chain, on
our ability to retain the skilled work force necessary for
production and development and generally on our ability to
effectively manage the impacts of the COVID-19 pandemic on our
business operations; and other factors disclosed in our filings
with the Securities and Exchange Commission. 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.
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.
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SOURCE Spirit AeroSystems