WICHITA, Kan. -- Spirit AeroSystems will book $590 million in charges during the third quarter because of setbacks in several aircraft contracts, sending shares of the aviation supplier tumbling 24 percent.
The company has missed cost targets, it said, because of the complexity in developing some products. That has driven up supplier, factory and labor costs.
Lenders have approved a change in terms for a credit facility, the company said.
The company also said that a settlement with insurers over damage from an April storm at its Wichita plant was $235 million, much less than the estimated $400 million. The settlement will be reported as a gain in third-quarter results.
The pretax charges include $184 million for work on the Boeing 787, $163 million for the Gulfstream G650 business jet, $151 million on the BR725 Rolls Royce engine for business jets, $88 million on the Gulfstream G280, and $4 million on other programs.
Shares of Spirit AeroSystems Holdings Inc., based in Wichita, Kan., dropped $5.13 to $16.53.