This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Spirit AeroSystems Holdings Inc's CEO Discusses Q1 2012 Results - Earnings Call Transcript

Now turning to the first quarter results. Our core program demonstrated solid operating performance, as we delivered 16% more commercial airplanes and recognized over 40% higher aftermarket sales for the same quarter in 2011. Our backlog, at over $33 billion, continues to illustrate the strong demand for our core products and our development programs transitioning to production.

As the large commercial aircraft market continues to be positive, we remain watchful of global economics and political dynamics while closely managing our capital spend to support increasing demand for our products.

Now let's talk about some of the specifics across the business during the quarter, beginning on Slide 3.

Fuselage Systems delivered solid operating margins of 14% on $623 million in revenue during the first quarter, as volumes across core programs increased. The Fuselage segments 737 high rate production line performed well as the team delivered its 4,000th shipset of the Next Generation fuselage. The 787 team made progress by delivering 8 airplane fuselage sections in the quarter, including the forward fuselage number 64.

While we are still early in our cost improvement efforts on the 787, the joint Boeing and Spirit teams continue to track per plan to identify and implement cost improvements across the program through value engineering, supply chain architecture and production flow.

The fuselage team also continued initial production on the 747-8 program this quarter by delivering the 45th fuselage. Additionally, in the quarter, the team shipped the first A350 XWB composite center fuselage to our Airbus customer in France.

On Slide 4, you can see the propulsion team delivered strong operating performance with margins of 16.7% on $344 million in revenue during the first quarter, as volumes across the core programs and aftermarket increased. The propulsion team's core business is strong at high rates. As we delivered the 4,000th Next Generation 737 Engine Pylon sets and Thrust Reversers in the quarter.

The segment's 787 team delivered Engine Pylons for unit number 65. Progress continues on the 747-8 engines truck production, as the propulsion team delivered the 41st shipset.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs