Spirit said in its third-quarter results that it had drawn down an entire US$350mil bridge loan set up when Boeing agreed to acquire the supplier in June. — Reuters
LOS ANGELES: Spirit AeroSystems posted deeper quarterly losses on Wednesday and said it was burning through dwindling cash reserves, as a strike by Boeing US factory workers hammered the finances of its biggest supplier.
Spirit said in its third-quarter results that it had drawn down an entire US$350mil bridge loan set up when Boeing agreed to acquire the supplier in June, confirming an earlier report from Reuters.
The supplier said it had not received US$425 million in cash advances it was expecting from Boeing under a memorandum of understanding signed in April, leaving it with just US$218mil in reserves at the end of the third quarter after the loan was drawn.
Spirit shares fell 4% in after-hours trading following the release of its results.
Boeing did not immediately respond to a request for comment about the cash advance.
Earlier on Wednesday, Boeing chief executive officer Kelly Ortberg said on an earnings call that there was “no change” to its planned acquisition and integration of Spirit.
Wichita, Kansas-based Spirit said this month it would implement a 21-day furlough for 700 workers as a five-week strike at Boeing eats into the supplier’s cash and inventory space.
Boeing suppliers that invested heavily on materials and tooling to support the planemaker’s planned ramp-up of jets have been furloughing workers in recent weeks and holding off on investments due to the strike. –– Reuters
