WICHITA, Kan., June 1, 2018 /CNW/ -- Spirit AeroSystems
Holdings, Inc. [NYSE: SPR] President and Chief Executive Officer
Tom Gentile announced at the
Bernstein 34th Annual Strategic Decisions Conference that the 737
recovery is tracking to plan.
"We are seeing positive impacts from our recovery efforts and
expect to be fully recovered to schedule by mid-year," said
Gentile.
In addition, the completion of $1.3
billion of bond financing on May 30,
2018, was discussed. The new bonds were part of a broader
plan to take advantage of the current interest rate environment to
lower the company's average cost of borrowing and extend debt
maturities. The use of proceeds from the bond issuance, combined
with borrowings under the company's revolving credit facility and
term loan, will be used to fund the acquisition of Asco Industries,
repurchase the company's bonds due in 2022, pay down a portion of
the company's term loan, execute an accelerated share repurchase
program (ASR), and for financing and acquisition-related costs.
"Our new debt structure will place our leverage in-line with
industry peers while leaving us comfortably within our desired
investment grade rating," Gentile commented.
In conjunction with the debt offering completion, the
$725 million ASR was initiated on
May 30, 2018.
"This ASR encompasses all of the planned share repurchases for
the year plus an incremental amount to take advantage of our
undervalued shares and demonstrate the confidence we have in our
operational outlook," remarked Gentile.
On the web: www.spiritaero.com
On Twitter: @SpiritAero
About Spirit AeroSystems Inc.
Spirit
AeroSystems designs and builds aerostructures for both commercial
and defense customers. With headquarters in Wichita, Kansas, Spirit operates
sites in the U.S., U.K., France and Malaysia. The company's
core products include fuselages, pylons, nacelles and wing
components for the world's premier
aircraft. Spirit AeroSystems focuses
on affordable, innovative
composite and aluminum manufacturing solutions to support customers
around the globe. More information is available
at www.spiritaero.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains "forward-looking
statements" that may involve many risks and uncertainties.
Forward-looking statements reflect our current expectations or
forecasts of future events. Forward-looking statements generally
can be identified by the use of forward-looking terminology such as
"aim," "anticipate," "believe," "could," "continue," "estimate,"
"expect," "goal," "forecast," "intend," "may," "might,"
"objective," "outlook," "plan," "predict," "project," "should,"
"target," "will," "would," and other similar words, or phrases, or
the negative thereof, unless the context requires otherwise. These
statements reflect management's current views with respect to
future events and are subject to risks and uncertainties, both
known and unknown. Our actual results may vary materially from
those anticipated in forward-looking statements. We caution
investors not to place undue reliance on any forward-looking
statements. Important factors that could cause actual results to
differ materially from those reflected in such forward-looking
statements and that should be considered in evaluating our outlook
include, but are not limited to, the following: 1) our ability to
continue to grow our business and execute our growth strategy,
including the timing, execution, and profitability of new and
maturing programs; 2) our ability to perform our obligations under
our new and maturing commercial, business aircraft, and military
development programs, and the related recurring production; 3) our
ability to accurately estimate and manage performance, cost, and
revenue under our contracts, including our ability to achieve
certain cost reductions with respect to the B787 program; 4) margin
pressures and the potential for additional forward losses on new
and maturing programs; 5) our ability to accommodate, and the cost
of accommodating, announced increases in the build rates of certain
aircraft; 6) the effect on aircraft demand and build rates of
changing customer preferences for business aircraft, including the
effect of global economic conditions on the business aircraft
market and expanding conflicts or political unrest in the
Middle East or Asia; 7) customer cancellations or deferrals
as a result of global economic uncertainty or otherwise; 8) the
effect of economic conditions in the industries and markets in
which we operate in the U.S. and globally and any changes therein,
including fluctuations in foreign currency exchange rates; 9) the
success and timely execution of key milestones such as the receipt
of necessary regulatory approvals, including our ability to obtain
in a timely fashion any required regulatory or other third party
approvals for the consummation of our announced acquisition of
Asco, and customer adherence to their announced schedules; 10) our
ability to successfully negotiate, or re-negotiate, future pricing
under our supply agreements with Boeing and our other customers;
11) our ability to enter into profitable supply arrangements with
additional customers; 12) the ability of all parties to satisfy
their performance requirements under existing supply contracts with
our two major customers, Boeing and Airbus, and other customers,
and the risk of nonpayment by such customers; 13) any adverse
impact on Boeing's and Airbus' production of aircraft resulting
from cancellations, deferrals, or reduced orders by their customers
or from labor disputes, domestic or international hostilities, or
acts of terrorism; 14) any adverse impact on the demand for air
travel or our operations from the outbreak of diseases or epidemic
or pandemic outbreaks; 15) our ability to avoid or recover from
cyber-based or other security attacks, information technology
failures, or other disruptions; 16) returns on pension plan assets
and the impact of future discount rate changes on pension
obligations; 17) our ability to borrow additional funds or
refinance debt, including our ability to obtain the debt to finance
the purchase price for our announced acquisition of Asco on
favorable terms or at all; 18) competition from commercial
aerospace original equipment manufacturers and other aerostructures
suppliers; 19) the effect of governmental laws, such as U.S. export
control laws and U.S. and foreign anti-bribery laws such as the
Foreign Corrupt Practices Act and the United Kingdom Bribery Act,
and environmental laws and agency regulations, both in the U.S. and
abroad; 20) the effect of changes in tax law, such as the effect of
The Tax Cuts and Jobs Act that was enacted on December 22, 2017, and changes to the
interpretations of or guidance related thereto, and the Company's
ability to accurately calculate and estimate the effect of such
changes; 21) any reduction in our credit ratings; 22) our
dependence on our suppliers, as well as the cost and availability
of raw materials and purchased components; 23) our ability to
recruit and retain a critical mass of highly-skilled employees and
our relationships with the unions representing many of our
employees; 24) spending by the U.S. and other governments on
defense; 25) the possibility that our cash flows and our credit
facility may not be adequate for our additional capital needs or
for payment of interest on, and principal of, our indebtedness; 26)
our exposure under our revolving credit facility to higher interest
payments should interest rates increase substantially; 27) the
effectiveness of any interest rate hedging programs; 28) the
effectiveness of our internal control over financial reporting; 29)
the outcome or impact of ongoing or future litigation, claims, and
regulatory actions; 30) exposure to potential product liability and
warranty claims; 31) our ability to effectively assess, manage and
integrate acquisitions that we pursue, including our ability to
successfully integrate the Asco business and generate synergies and
other cost savings; 32) our ability to consummate our announced
acquisition of Asco in a timely matter while avoiding any
unexpected costs, charges, expenses, adverse changes to business
relationships and other business disruptions for ourselves and Asco
as a result of the acquisition; 33) our ability to continue selling
certain receivables through our supplier financing program; 34) the
risks of doing business internationally, including fluctuations in
foreign current exchange rates, impositions of tariffs or
embargoes, compliance with foreign laws, and domestic and foreign
government policies; and 35) our ability to complete the proposed
accelerated stock repurchase plan, among other things. These
factors are not exhaustive and it is not possible for us to predict
all factors that could cause actual results to differ materially
from those reflected in our forward-looking statements. These
factors speak only as of the date hereof, and new factors may
emerge or changes to the foregoing factors may occur that could
impact our business. As with any projection or forecast, these
statements are inherently susceptible to uncertainty and changes in
circumstances. Except to the extent required by law, we undertake
no obligation to, and expressly disclaim any obligation to,
publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
Additional information concerning these and other factors can be
found in our filings with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q.
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SOURCE Spirit AeroSystems Holdings, Inc.