Spirit AeroSystems raises doubts over ‘ability to continue as going concern’

The company said in a regulatory filing, in part: “… Since 2020, the company (SPR) has incurred significant operating losses. In particular, the Company has incurred net losses of $1,508.9M $616.2M , $545.7M , and $540.8M , for the nine months ended September 26 and the years ended December 31, 2023, 2022, and 2021, respectively. The Company’s liquidity has been impacted by, among other things, higher levels of inventory and contract assets, lower operational cash flows due to a decrease in expected deliveries to Boeing (BA), higher factory costs to maintain rate readiness, Boeing no longer allowing for traveled work on the B737 fuselage to its factories, the strike by Boeing employees, and the limitations on Boeing increasing production rates. On October 18 the Company announced a 21-day furlough, effective October 28 for approximately 700 Company employees working on the B767 and B777 programs in response to the strike by Boeing employees, as the Company has reached maximum storage capacity on the B767 and B777 programs. As of November 5, management has developed a plan designed to improve liquidity in response to the developments described above.and conditions, including in the Merger Agreement, and restructuring of operations with the aim of increasing efficiency and decreasing expenses, which may include layoffs or additional furloughs…. There can be no assurance with respect to the outcomes of such discussions or that these plans or strategies will sufficiently improve the Company’s liquidity needs to enable continuation of operations for at least the next twelve months. Accordingly, these conditions and events raise substantial doubt about the Company’s ability to continue as a going concern…”