Spirit AeroSystems CFO, Chief Accounting Officer Resign Following Compliance Review

Spirit AeroSystems, Boeing's biggest supplier, said two of its top accounting executives had resigned following a review of the company's compliance practices.
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Spirit AeroSystems (SPR) - Get Report, Boeing's (BA) - Get Report biggest supplier, said Thursday that two of its top accounting executives had resigned following a review of the company's compliance practices.

Shares of Spirit AeroSystems at last check were off 6.6% to $63.20.

The Wichita, Kan., aerostructures maker said in a statement that Jose Garcia, senior vice president and CFO, and John Gilson, vice president, controller and principal accounting officer, had resigned.

Spirit said that in December it learned that the company did not comply with its established accounting processes related to certain potential contingent liabilities that it received after the end of third-quarter 2019. The review is continuing.

As of today, Spirit doesn't expect to have to restate its financials for the third quarter, the company said. Nor should the matter materially affect the financial statements for all of 2019. But "the review is ongoing and no final conclusion has been made," Spirit AeroSystems said.

Garcia and Gilson resigned in light of the findings and Spirit said it informed the Securities and Exchange Commission about the matter.

"Spirit is taking steps to strengthen procedures relating to contingent liabilities of this type to ensure they are processed correctly in the future," the company said. 

"Spirit expects to file its Form 10-K for the 2019 fiscal year by the [SEC's] deadline."

The company named Mark Suchinski, who has held various financial-leadership roles at Spirit since 2006, as senior vice president and CFO; and Damon Ward as interim controller and principal accounting officer, effective Jan. 29.

Separately, Spirit said Thursday it would slowly restart production of parts for Boeing's 737 MAX jetliner.

The 737 MAX has been grounded since March 2019 following two deadly crashes that killed a total of 346 people.

Spirit on Jan. 1 suspended production of fuselages and other parts for the MAX, after Boeing, based in Chicago, told the company to suspend shipments.