Spirit AeroSystems Holdings, Inc. (SPR) has reported 17.42 percent fall in profit for the quarter ended Mar. 30, 2017. The company has earned $141.70 million, or $1.17 a share in the quarter, compared with $171.60 million, or $1.29 a share for the same period last year.
Revenue during the quarter went up marginally by 0.74 percent to $1,694.10 million from $1,681.60 million in the previous year period. Gross margin for the quarter contracted 258 basis points over the previous year period to 16.60 percent. Total expenses were 87.39 percent of quarterly revenues, up from 84.15 percent for the same period last year. That has resulted in a contraction of 324 basis points in operating margin to 12.61 percent.
Operating income for the quarter was $213.60 million, compared with $266.50 million in the previous year period.
"We are on track to ramp up the production rate on the Boeing 737 program from 42 airplanes per month to 47 per month before the end of the second quarter and increase the A350 production rate to 10 per month by 2018," Spirit president and chief executive officer Tom Gentile said.
For financial year 2017, Spirit Aerosystems Holdings projects revenue to be in the range of $6.80 million to $6.90 million. The company forecasts diluted earnings per share to be in the range of $4.60 to $4.85.
Operating cash flow improves
Spirit AeroSystems Holdings, Inc. has generated cash of $111.70 million from operating activities during the quarter, up 19.08 percent or $17.90 million, when compared with the last year period. The company has spent $40.60 million cash to meet investing activities during the quarter as against cash outgo of $50.40 million in the last year period.
The company has spent $97.30 million cash to carry out financing activities during the quarter as against cash outgo of $175.40 million in the last year period.
Cash and cash equivalents stood at $672.20 million as on Mar. 30, 2017, down 18.31 percent or $150.70 million from $822.90 million on Mar. 31, 2016.
Working capital declines
Spirit AeroSystems Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,396.50 million as at Mar. 30, 2017, down 22.55 percent or $406.60 million from $1,803.10 million on Mar. 31, 2016. Current ratio was at 1.87 as on Mar. 30, 2017, down from 2.17 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 41 days for the quarter from 111 days for the last year period. Days sales outstanding went up to 36 days for the quarter compared with 33 days for the same period last year.
Days inventory outstanding has decreased to 46 days for the quarter compared with 120 days for the previous year period. At the same time, days payable outstanding went down to 41 days for the quarter from 42 for the same period last year.
Debt comes down marginally
Spirit Aerosystems Holdings has recorded a decline in total debt over the last one year. It stood at $1,090.70 million as on Mar. 30, 2017, down 3.16 percent or $35.60 million from $1,126.30 million on Mar. 31, 2016. Total debt was 19.92 percent of total assets as on Mar. 30, 2017, compared with 19.46 percent on Mar. 31, 2016. Debt to equity ratio was at 0.55 as on Mar. 30, 2017, up from 0.53 as on Mar. 31, 2016.
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