Spirit AeroSystems Holdings, Inc. Reports Second Quarter 2010 Financial
Results; Reports Revenues of $1.056 Billion and Fully Diluted EPS of $0.39
Per Share; Includes ($0.10) Per Share For IAM Contract Stock Award


    
    -- Second Quarter 2010 Revenues of $1.056 billion

    -- Operating Income of $86 million; Operating Margins of 8.1 percent

    -- Fully Diluted Earnings Per Share of $0.39 per share

    -- Cash and Cash Equivalents were $118 million

    -- Total backlog of approximately $27.2 billion









    
</pre>
<p><span class="xn-location">WICHITA</span>, Kan., <span class="xn-chron">Aug. 3</span> /CNW/ -- Spirit AeroSystems Holdings, Inc. (NYSE:   SPR) reported second quarter 2010 financial results reflecting solid operating performance.</p>
<p/>
<p>Spirit's second quarter 2010 revenues were <span class="xn-money">$1.056 billion</span>, down slightly from <span class="xn-money">$1.060 billion</span> for the same period of 2009, driven by model mix and volume.  Operating income increased to <span class="xn-money">$86 million</span>, compared to (<span class="xn-money">$10</span>) million for the same period in 2009.  Net income for the quarter increased to <span class="xn-money">$55 million</span>, or <span class="xn-money">$0.39</span> per fully diluted share, compared to (<span class="xn-money">$8</span>) million, or (<span class="xn-money">$0.06</span>) per fully diluted share, in the same period of 2009.</p>
<p/>
<p>Second quarter pre-tax earnings were reduced by approximately (<span class="xn-money">$19</span>) million for the quarter, or (<span class="xn-money">$0.10</span>) per share, related to the award of stock to eligible union employees as part of the new 10-year agreement with Spirit's largest labor union, the International Association of Machinists and Aerospace Workers (IAM).  Results in the comparable quarter of 2009 were impacted by several unusual charges which also resulted in a tax benefit.  (Table 1)</p>
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<p> </p>
<pre>
    
    Table 1.  Summary Financial Results (unaudited)
    -----------------------------------------------
    
</pre>
<p> </p>
<pre>
    
                                           2nd Quarter
    ($ in millions, except per share
     data)                               2010        2009  Change
    
</pre>
<p> </p>
<pre>
    
    Revenues                           $1,056      $1,060      ~0%
    Operating Income                      $86        ($10)      NM
    Operating Income as a % of
     Revenues                             8.1%      (1.0%)      NM
    Net Income                            $55         ($8)      NM
    Net Income as a % of Revenues         5.2%      (0.8%)      NM
    Earnings per Share (Fully
     Diluted)                           $0.39      ($0.06)      NM
    Fully Diluted Weighted Avg Share
     Count                              140.4       138.0



    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                          Six Months
    ($ in millions, except per share
     data)                               2010     2009   Change
    
</pre>
<p> </p>
<pre>
    
    Revenues                           $2,099   $1,947         8%
    Operating Income                     $179      $87       104%
    Operating Income as a % of
     Revenues                             8.5%     4.5% 400  BPS
    Net Income                           $111      $54       103%
    Net Income as a % of Revenues         5.3%     2.8% 250 BPS
    Earnings per Share (Fully
     Diluted)                           $0.79    $0.39       103%
    Fully Diluted Weighted Avg Share
     Count                              140.6    139.9


    
</pre>
<p>"We generated solid operating performance across the company," said President and Chief Executive Officer <span class="xn-person">Jeff Turner</span>.  "With our core businesses executing well, continued progress on our development programs, and our team for the future intact, we have the positive momentum needed to fulfill our long-term value creation strategy."</p>
<p/>
<p>"Underscoring our ongoing diversification, on <span class="xn-chron">July 1st</span>, we were pleased to celebrate the grand opening of Spirit North Carolina in Kinston, NC.  A significant milestone for Spirit, this facility will initially focus on the design and manufacture of the Airbus A350 XWB Section 15 fuselage and the forward wing spar employing state-of-the-art composite technology and processes. We're excited about our continued journey helping build the next generation of commercial aircraft, as well as our growing partnership with Airbus and the State of North Carolina," Turner added.</p>
<p/>
<p>"Looking forward, the commercial aerospace market continues to strengthen, with demand for our core products growing.  While certain segments of the business jet market are still a concern and several significant development milestones are ahead of us, our priority will continue to be on solid execution as we deliver on our customer commitments to ensure we meet our company's potential," Turner concluded.</p>
<p/>
<p>Spirit's backlog at the end of the second quarter of 2010 was <span class="xn-money">$27.2 billion</span>, down approximately three percent, as deliveries exceeded orders.  Spirit calculates its backlog based on contractual prices for products and volumes from the published firm order backlogs of Airbus and Boeing, along with firm orders from other customers.</p>
<p/>
<p>Spirit contract profitability estimates during the second quarter of 2010 resulted in no net contract adjustments.  In comparison, Spirit recognized a <span class="xn-money">$33 million</span> unfavorable cumulative catch-up adjustment for the second quarter of 2009.</p>
<p/>
<p>Cash flow from operations was a (<span class="xn-money">$7</span>) million use of cash for the second quarter of 2010, compared to a (<span class="xn-money">$67</span>) million use of cash for the second quarter of 2009. The current quarter improvement is largely the result of the slowing of new program inventory growth; net favorable accounts payable and accounts receivable results, which were largely the result of timing; and additional receipts of deferred revenue.   (Table 2)</p>
<p/>
<p> </p>
<p> </p>
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    Table 2.  Cash Flow and Liquidity
                                    2nd Quarter         Six Months
                                    -----------         ----------
    ($ in millions)                2010   2009     2010         2009
    ---------------                ----   ----     ----         ----
    
</pre>
<p> </p>
<pre>
    
    Cash Flow from Operations       ($7) ($67)    ($117)       ($216)
    Purchases of Property, Plant
     & Equipment                  ($61)  ($52)    ($131)       ($107)
    
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<p> </p>
<pre>
    
                                                           December
                                                July 1,       31,
    Liquidity                                      2010         2009
                                                   ----         ----
    
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<p> </p>
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    Cash                                           $118         $369
    Total Debt                                     $893         $894
    ----------                                     ----         ----


    
</pre>
<p>Cash balances at the end of the second quarter 2010 were <span class="xn-money">$118 million</span> and debt balances were <span class="xn-money">$893 million</span>.  At the end of the second quarter, the company's <span class="xn-money">$409 million</span> revolving credit facility remained undrawn, with approximately <span class="xn-money">$19 million</span> of the credit facility reserved for financial letters of credit.</p>
<p/>
<p>The company's credit ratings remained unchanged at the end of the second quarter with a BB rating at Standard & Poor's and a Ba3 rating at Moody's.</p>
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    2010 Outlook
    
</pre>
<p>Spirit revenue guidance for the full-year 2010 remains unchanged and is expected to be between <span class="xn-money">$4.0</span> and <span class="xn-money">$4.2 billion</span> based on Boeing's 2010 delivery guidance of 460 - 465 aircraft; anticipated B787 deliveries; expected Airbus deliveries in 2010 of approximately 498 aircraft; internal Spirit forecasts for non-OEM production activity and other customers; and foreign exchange rates consistent with those in the first half of 2010.</p>
<p/>
<p>Fully diluted earnings per share guidance for 2010 remains unchanged and is expected to be between <span class="xn-money">$1.50</span> and <span class="xn-money">$1.70</span> per share.</p>
<p/>
<p>Cash flow from operations, less capital expenditures, is expected to be approximately (<span class="xn-money">$250</span>) million use of cash in the aggregate, with capital expenditures of approximately <span class="xn-money">$325 million</span>.  Anticipated capital expenditures in 2010 include approximately <span class="xn-money">$100 million</span> of tooling associated with the Airbus A350 XWB program.  Cash flow from operations, less capital expenditures, is expected to be significantly improved in 2011.</p>
<p/>
<p>The effective tax rate, forecasted to be approximately 27 percent for 2010, remains unchanged.  This assumes the benefit attributable to extending the U.S. research tax credit.  (Table 3)</p>
<p/>
<p>Risk to our financial guidance includes, among other factors: higher than forecasted non-recurring and recurring costs on our development programs; mid-range business jet market risks; our ability to achieve anticipated productivity and cost improvements; and the ability to resolve significant 787 program claims with Boeing.</p>
<p/>
<p> </p>
<p> </p>
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    Table 3.  Financial                2009                   2010
     Outlook                          Actual                Guidance
    -------------------                ------                --------
    
</pre>
<p> </p>
<p> </p>
<p>Revenues                      <span class="xn-money">$4.1  billion</span>      <span class="xn-money">$4.0 - $4.2 billion</span></p>
<p> </p>
<pre>
    
    Earnings Per Share
     (Fully Diluted)                      $1.37            $1.50 - $1.70
    
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<p> </p>
<p>Effective Tax Rate                     29.7%            ~27% *</p>
<p> </p>
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    Cash Flow from                     ($14)                  ~$75
     Operations                      million                million
    
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<p> </p>
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                                                             ~$325
    Capital Expenditures          $228  million             million
    
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<p> </p>
<pre>
    
    Customer Reimbursement        $115  million              N/A**
    ----------------------        -------------              -----



    
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<p>* Effective tax rate guidance, among other factors, assumes the benefit attributable to extending the U.S. research tax credit (Assumes ~2.5% benefit).</p>
<p/>
<p>** Although calculations for years through 2009 included customer reimbursements, these payments concluded in <span class="xn-chron">December 2009</span>.</p>
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    Cautionary Statement Regarding Forward-Looking Statements
    
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<p>This press release contains "forward-looking statements."  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 "may," "will," "expect," "anticipate," "intend," "estimate," "believe," "project," "continue," "plan," "forecast," or other similar words, 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: our ability to continue to grow our business and execute our growth strategy, including the timing and execution of new programs; our ability to perform our obligations and manage costs related to our new commercial and business aircraft development programs and the related recurring production; potential reduction in the build rates of certain Boeing aircraft including, but not limited to, the B737 program, the B747 program, the B767 program and the B777 program, and build rates of the Airbus A320 and A380 programs, which could be negatively impacted by continuing weakness in the global economy and economic challenges facing commercial airlines, and by a lack of business and consumer confidence and the impact of continuing instability in the global financial and credit markets, including, but not limited to, sovereign debt concerns in <span class="xn-location">Europe</span>; the inability to resolve significant claims with Boeing related to non-recurring and recurring costs on the B787 program; declining business jet manufacturing rates and customer cancellations or deferrals as a result of the weakened global economy; the success and timely execution of key milestones such as certification and delivery of Boeing's new B787 and Airbus' new A350 XWB aircraft programs, including receipt of necessary regulatory approvals and customer adherence to their announced schedules; our ability to enter into supply arrangements with additional customers and the ability of all parties to satisfy their performance requirements under existing supply contracts with Boeing and Airbus, our two major customers, and other customers and the risk of nonpayment by such customers; 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 or acts of terrorism; any adverse impact on the demand for air travel or our operations from the outbreak of diseases such as the influenza outbreak caused by the H1N1 virus, avian influenza, severe acute respiratory syndrome or other epidemic or pandemic outbreaks; returns on pension plan assets and impact of future discount rate changes on pension obligations; competition from original equipment manufacturers and other aerostructures suppliers; the effect of governmental laws, such as U.S. export control laws, the Foreign Corrupt Practices Act, environmental laws and agency regulations, both in the U.S. and abroad; the cost and availability of raw materials and purchased components; our ability to successfully extend or renegotiate our primary collective bargaining contracts with our labor unions; our ability to recruit and retain highly skilled employees and our relationships with the unions representing many of our employees; spending by the U.S. and other governments on defense; the possibility that our cash flows and borrowing facilities may not be adequate for our additional capital needs or for payment of interest on and principal of our indebtedness and the possibility that we may be unable to borrow additional funds or refinance debt; our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; the outcome or impact of ongoing or future litigation and regulatory actions; our exposure to potential product liability and warranty claims; and the other factors described under Item 1A, "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended <span class="xn-chron">December 31, 2009</span>.  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.</p>
<pre>
    

    Appendix

    Segment Results

    Fuselage Systems
    
</pre>
<p>Fuselage Systems segment revenues for the second quarter of 2010 were <span class="xn-money">$515.2 million</span>, down 4.8 percent over the same period last year, driven by model mix and volume.  Operating margin for the second quarter of 2010 was 15.7 percent as compared to 11.0 percent during the same period of 2009.  During the second quarter of 2009, the segment realized an unfavorable pre-tax <span class="xn-money">$34 million</span> of unusual items.</p>
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    Propulsion Systems
    
</pre>
<p>Propulsion Systems segment revenues for the second quarter of 2010 were <span class="xn-money">$272.0 million</span>, down 2.3 percent over the same period last year, driven by model mix and volume.  Operating margin for the second quarter of 2010 was 12.3 percent as compared to 8.3 percent in the second quarter of 2009.  During the second quarter of 2009, the segment realized an unfavorable pre-tax <span class="xn-money">$18 million</span> cumulative catch-up adjustment.</p>
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    Wing Systems
    
</pre>
<p>Wing Systems segment revenues for the second quarter of 2010 were <span class="xn-money">$266.9 million</span>, up 13.7 percent over the same period last year, as the current quarter includes additional new program revenues.  Operating margin for the second quarter of 2010 was 10.6 percent as compared to (25.1) percent during the same period of 2009, as the previous quarter reflected a <span class="xn-money">$90 million</span> forward-loss on the Gulfstream G250.  During the second quarter of 2009, the segment realized a favorable pre-tax <span class="xn-money">$8 million</span> cumulative catch-up adjustment.</p>
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<p> </p>
<p> </p>
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    Table 4.  Segment
     Reporting                        (unaudited)
                                      2nd Quarter
                                      -----------
    ($ in millions)              2010      2009     Change
    ---------------              ----      ----     ------
    
</pre>
<p> </p>
<pre>
    
    Segment Revenues
       Fuselage Systems        $515.2    $541.2         (4.8%)
       Propulsion Systems      $272.0    $278.5         (2.3%)
       Wing Systems            $266.9    $234.7          13.7%
       All Other                 $1.9      $5.2        (63.5%)
                                 ----      ----       -------
    Total Segment Revenues   $1,056.0  $1,059.6         (0.3%)
    
</pre>
<p> </p>
<pre>
    
    Segment Earnings from
     Operations
       Fuselage Systems         $80.9     $59.3          36.4%
       Propulsion Systems       $33.4     $23.2          44.0%
       Wing Systems             $28.3    ($58.8)        148.1%
       All Other                ($2.5)    ($2.4)        (4.2%)
                                -----     -----        ------
    Total Segment
     Operating Earnings        $140.1     $21.3         557.7%
    
</pre>
<p> </p>
<pre>
    
    Unallocated Corporate
     SG&A                      ($34.7)   ($30.7)       (13.0%)
    Unallocated Research &
     Development                ($0.8)    ($1.0)         20.0%
    Unallocated Cost of
     Sales (1)                 ($18.9)     $0.0            NA
                               ------      ----           ---
    Total Earnings from
     Operations                 $85.7    ($10.4)        924.0%
    
</pre>
<p> </p>
<pre>
    
    Segment Operating
     Margins
       Fuselage Systems          15.7%     11.0%     470  BPS
       Propulsion Systems        12.3%      8.3%     400  BPS
       Wing Systems              10.6%   (25.1%)   3,570  BPS
                                                       (8,540)
       All Other              (131.6%)   (46.2%)          BPS
                             --------   -------       -------
    Total Segment
     Operating Margins           13.3%      2.0%   1,130  BPS
    
</pre>
<p> </p>
<pre>
    
    Total Operating
     Margins                      8.1%    (1.0%)     910  BPS
    ---------------               ---    ------      --------



    
</pre>
<p> </p>
<p> </p>
<pre>
    
    Table 4.  Segment
     Reporting                        (unaudited)
                                      Six Months
                                      ----------
    ($ in millions)             2010      2009     Change
    ---------------             ----      ----     ------
    
</pre>
<p> </p>
<pre>
    
    Segment Revenues
       Fuselage Systems     $1,031.4    $971.7           6.1%
       Propulsion Systems     $546.4    $505.9           8.0%
       Wing Systems           $515.8    $455.6          13.2%
       All Other                $5.7     $13.8        (58.7%)
                                ----     -----       -------
    Total Segment Revenues  $2,099.3  $1,947.0           7.8%
    
</pre>
<p> </p>
<pre>
    
    Segment Earnings from
     Operations
       Fuselage Systems       $156.8    $134.2          16.8%
       Propulsion Systems      $67.0     $61.9           8.2%
       Wing Systems            $47.2    ($39.3)        220.1%
       All Other               ($2.2)    ($2.0)       (10.0%)
                               -----     -----       -------
    Total Segment
     Operating Earnings       $268.8    $154.8          73.6%
    
</pre>
<p> </p>
<pre>
    
    Unallocated Corporate
     SG&A                     ($69.7)   ($66.2)        (5.3%)
    Unallocated Research &
     Development               ($1.5)    ($1.2)       (25.0%)
    Unallocated Cost of
     Sales (1)                ($18.9)     $0.0            NA
                              ------      ----           ---
    Total Earnings from
     Operations               $178.7     $87.4         104.5%
    
</pre>
<p> </p>
<pre>
    
    Segment Operating
     Margins
       Fuselage Systems         15.2%     13.8%     140  BPS
       Propulsion Systems       12.3%     12.2%      10  BPS
       Wing Systems              9.2%    (8.6%)   1,780  BPS
                                                      (2,410)
       All Other              (38.6%)   (14.5%)          BPS
                             -------   -------       -------
    Total Segment
     Operating Margins          12.8%      8.0%     480  BPS
    
</pre>
<p> </p>
<pre>
    
    Total Operating
     Margins                     8.5%      4.5%     400  BPS
    ---------------              ---       ---      --------


    
</pre>
<p>(1) Charges in the second quarter of 2010 related to the grant of shares to represented employees of the IAM in connection with the ratification of a new ten-year labor contract on <span class="xn-chron">June 25, 2010</span>.</p>
<pre>
    


    
</pre>
<p> </p>
<p> </p>
<pre>
    
                  Spirit Ship Set Deliveries
              (One Ship Set equals One Aircraft)
    
</pre>
<p> </p>
<p>          2009 Spirit AeroSystems Deliveries</p>
<p> </p>
<pre>
    
                  1st     2nd     3rd     4th     Total
                  Qtr     Qtr     Qtr     Qtr      2009
                 ----    ----    ----    ----    ------
          B737      74      96      93      87       350
          B747       3       1       3       4        11
          B767       3       3       3       3        12
          B777      21      21      21      19        82
          B787       2       2       2       5        11
                   ---     ---     ---     ---       ---
         Total     103     123     122     118       466
    
</pre>
<p> </p>
<pre>
    
          A320
        Family     105     101      94     108       408
      A330/340      26      23      28      23       100
          A380       -       2       5       4        11
                   ---     ---     ---     ---       ---
         Total     131     126     127     135       519
    
</pre>
<p> </p>
<pre>
    
        Hawker
         850XP      18      13       6       7        44
                   ---     ---     ---     ---       ---
    
</pre>
<p> </p>
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         Total
        Spirit     252     262     255     260     1,029
                   ===     ===     ===     ===     =====
    
</pre>
<p> </p>
<p> </p>
<p>       2010 Spirit AeroSystems Deliveries</p>
<p> </p>
<pre>
    
                  1st     2nd     3rd     4th
                  Qtr     Qtr     Qtr     Qtr   YTD 2010
                 ----    ----    ----    ----   --------
          B737      94      96                       190
          B747       3       1                         4
          B767       3       4                         7
          B777      21      18                        39
          B787       5       4                         9
                   ---     ---                       ---
         Total     126     123                       249
    
</pre>
<p> </p>
<pre>
    
          A320
        Family     102      95                       197
      A330/340      25      23                        48
          A380       1       5                         6
                   ---     ---                       ---
         Total     128     123                       251
    
</pre>
<p> </p>
<pre>
    
        Hawker
         850XP       5       4                         9
                   ---     ---                       ---
    
</pre>
<p> </p>
<pre>
    
         Total
        Spirit     259     250                       509
                   ===     ===                       ===


    
</pre>
<p> </p>
<pre>
    
                              Spirit AeroSystems Holdings, Inc.
                       Condensed Consolidated Statements of Operations
                                         (unaudited)
    
</pre>
<p> </p>
<pre>
    
                                            For the Three Months
                                                   Ended
                                            --------------------
                                         July 1,         July 2,
                                           2010            2009
                                        --------        --------
                                   ($ in millions, except per share data)
    
</pre>
<p> </p>
<pre>
    
    Net revenues                         $1,056.0        $1,059.6
      Operating costs and
       expenses:
      Cost of sales                         919.6         1,021.6
      Selling, general and
       administrative                        38.1            34.7
      Research and development               12.6            13.7
                                             ----            ----
      Total operating costs and
       expenses                             970.3         1,070.0
      Operating income (loss)                85.7           (10.4)
    Interest expense and
     financing fee amortization             (13.8)           (9.8)
    Interest income                           0.1             2.0
    Other income (expense), net               2.7             4.2
                                              ---             ---
      Income before income taxes
       and equity in net (loss) of
       affiliate                             74.7           (14.0)
    Income tax provision                    (19.6)            5.8
                                            -----             ---
      Income before equity in net
       (loss) of affiliate                   55.1            (8.2)
    Equity in net income (loss)
     of affiliate                               -            (0.1)
                                              ---            ----
      Net income                            $55.1           $(8.3)
                                            =====           =====
    
</pre>
<p> </p>
<pre>
    
    Earnings per share
    Basic                                   $0.40          $(0.06)
    Shares                                  137.5           138.0
    
</pre>
<p> </p>
<pre>
    
    Diluted                                 $0.39          $(0.06)
    Shares                                  140.4           138.0



    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                             For the Six Months
                                                   Ended
                                             ------------------
                                         July 1,         July 2,
                                           2010            2009
                                         -------         -------
                                   ($ in millions, except per share data)
    
</pre>
<p> </p>
<pre>
    
    Net revenues                         $2,099.3        $1,947.0
      Operating costs and
       expenses:
      Cost of sales                       1,820.7         1,758.9
      Selling, general and
       administrative                        77.4            73.1
      Research and development               22.5            27.6
                                             ----            ----
      Total operating costs and
       expenses                           1,920.6         1,859.6
      Operating income (loss)               178.7            87.4
    Interest expense and
     financing fee amortization             (27.8)          (18.9)
    Interest income                           0.2             4.6
    Other income (expense), net              (2.8)            5.7
                                             ----             ---
      Income before income taxes
       and equity in net (loss) of
       affiliate                            148.3            78.8
    Income tax provision                    (37.4)          (24.4)
                                            -----           -----
      Income before equity in net
       (loss) of affiliate                  110.9            54.4
    Equity in net income (loss)
     of affiliate                            (0.3)              -
                                             ----             ---
      Net income                           $110.6           $54.4
                                           ======           =====
    
</pre>
<p> </p>
<pre>
    
    Earnings per share
    Basic                                   $0.80           $0.39
    Shares                                  137.4           137.9
    
</pre>
<p> </p>
<pre>
    
    Diluted                                 $0.79           $0.39
    Shares                                  140.6           139.9


    
</pre>
<p> </p>
<p> </p>
<pre>
    
     Spirit AeroSystems Holdings, Inc.
     Condensed Consolidated Balance Sheets
     (unaudited)
                                                     July 1,       December
                                                       2010        31, 2009
                                                    --------      ---------
                                                         ($ in millions)
     Current assets
     Cash and cash equivalents                        $117.6         $369.0
     Accounts receivable, net                          270.1          160.4
     Inventory, net                                  2,375.3        2,206.9
     Other current assets                               91.7          116.6
                                                        ----          -----
         Total current assets                        2,854.7        2,852.9
     Property, plant and equipment, net              1,357.0        1,279.3
     Pension assets                                    182.6          171.2
     Other assets                                      148.7          170.4
                                                       -----          -----
         Total assets                               $4,543.0       $4,473.8
                                                    ========       ========
     Current liabilities
     Accounts payable                                 $473.5         $441.3
     Accrued expenses                                  176.4          165.5
     Current portion of long-term debt                   6.7            9.1
     Advance payments, short-term                      219.4          237.4
     Deferred revenue, short-term                       95.6          107.1
     Other current liabilities                          20.7           21.8
                                                        ----           ----
         Total current liabilities                     992.3          982.2
     Long-term debt                                    886.5          884.7
     Advance payments, long-term                       671.1          727.5
     Deferred revenue and other deferred credits        40.3           46.0
     Pension/OPEB obligation                            66.1           62.6
     Other liabilities                                 186.9          197.0
     Shareholders' equity
     Preferred stock, par value $0.01, 10,000,000
      shares authorized, no shares issued                  -              -
     Common stock, Class A par value $0.01,
      200,000,000 shares authorized, 105,993,873
      and 105,064,561 issued, respectively               1.1            1.0
     Common stock, Class B par value $0.01,
      150,000,000 shares authorized, 35,221,084
      and 35,669,740 shares issued, respectively         0.4            0.4
     Additional paid-in capital                        974.4          949.8
     Accumulated other comprehensive loss              (69.0)         (59.7)
     Retained earnings                                 792.4          681.8
                                                       -----          -----
         Total shareholders' equity                  1,699.3        1,573.3
     Noncontrolling interest                             0.5            0.5
                                                         ---            ---
         Total equity                                1,699.8        1,573.8
                                                     -------        -------
         Total liabilities and shareholders' equity $4,543.0       $4,473.8
                                                    ========       ========


    
</pre>
<p> </p>
<pre>
    
                        Spirit AeroSystems Holdings, Inc.
                 Condensed Consolidated Statements of Cash Flows
                                   (unaudited)
    
</pre>
<p> </p>
<p> </p>
<pre>
    
                                                  For the Six Months
                                                        Ended
                                                  ------------------
                                              July 1,         July 2,
                                                2010            2009
                                              -------         -------
                                                   ($ in millions)
    Operating activities
    Net income                                  $110.6           $54.4
    Adjustments to reconcile net income
     to net cash (used in) operating
     activities
         Depreciation expense                     55.2            62.2
         Amortization expense                      6.4             4.7
         Accretion of long-term receivable           -            (4.5)
         Employee stock compensation expense      21.6             6.0
         Excess tax benefits from share-based
          payment arrangements                    (3.1)              -
        (Gain) loss from foreign currency
         transactions                              6.7            (4.7)
         Gain on disposition of assets            (0.1)              -
         Deferred taxes and long-term income
          taxes payable                           (9.6)           (4.6)
         Pension and other post-retirement
          benefits, net                           (5.7)            1.0
         Grant income                             (0.6)           (0.5)
         Equity in net loss of affiliate           0.3               -
    Changes in assets and liabilities
         Accounts receivable                    (119.5)         (109.4)
         Inventory, net                         (172.2)         (203.0)
         Accounts payable and accrued
          liabilities                             50.2           109.2
         Advance payments                        (74.4)          (43.7)
         Deferred revenue and other deferred
          credits                                (14.8)          (45.7)
         Other                                    31.7           (37.4)
            Net cash (used in) operating
             activities                         (117.3)         (216.0)
                                                ------          ------
    Investing activities
    Purchase of property, plant and
     equipment                                  (130.6)         (106.7)
    Long-term receivable                             -            57.7
    Other                                         (0.7)            0.7
            Net cash (used in) investing
             activities                         (131.3)          (48.3)
                                                ------           -----
    Financing activities
    Proceeds from revolving credit
     facility                                        -           250.0
    Payments on revolving credit facility            -          (100.0)
    Proceeds from government grants                  -             0.6
    Principal payments of debt                    (5.9)           (3.9)
    Debt issuance and financing costs                -           (10.2)
     Excess tax benefits from share-based
      payment arrangements                         3.1               -
            Net cash provided by (used in)
             financing activities                 (2.8)          136.5
                                                  ----           -----
    Effect of exchange rate changes on
     cash and cash equivalents                       -             0.2
                                                   ---             ---
            Net increase in cash and cash
             equivalents for the period         (251.4)         (127.6)
    Cash and cash equivalents, beginning
     of the period                               369.0           216.5
    Cash and cash equivalents, end of the
     period                                     $117.6           $88.9
                                                ======           =====





    

For further information: For further information: Investor Relations, Alan Hermanson, +1-316-523-7040, or Media, Debbie Gann, +1-316-526-3910, both of Spirit AeroSystems Holdings, Inc. Web Site: http://www.spiritaero.com


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