Spirit AeroSystems profit hurt by Boeing strike

WICHITA, Kan. - Spirit AeroSystems Holdings Inc. said Wednesday its third-quarter earnings fell 12 percent as a strike at Boeing Co., its largest customer, cut demand for its aircraft components.

The company posted net income of $74 million, or 53 cents per share, compared with $84 million, or 60 cents per share, in the year-earlier quarter. Revenue rose 6 percent to $1.03 billion from $968 million.

Analysts, on average, were expecting a profit of 50 cents per share on revenue of $1.05 billion, according to a poll by Thomson Reuters.

The company said the work stoppage at Boeing caused it to cut its work schedule for employees working on certain programs for the aerospace company. The strike cut earnings per share by 13 cents and revenue by $53 million, the company said.

"As for the outlook of the commercial aerospace market, we absolutely believe that we operate in a global market which will continue to see long-term growth," President and Chief Executive Jeff Turner said in a statement. "However, we are closely monitoring the recent developments in the global financial markets and assessing the potential near-term impact on the commercial aerospace segment."

Spirit said it expects to negotiate a new production plan and delivery schedule with Boeing when the strike ends, expected by the end of November. The company plans to release updated earnings expectations then.

Boeing's Machinist union is expected to vote on the tentative four-year labor agreement Saturday.

Spirit AeroSystems shares rose $1.17, or 8.2 percent, to $15.37 in afternoon trading.

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