This company makes parts for aircraft, including Boeing.
Things are not looking good here at Spirt. Formerly a Boeing subsidiary it looks like it’s managed to absorb much of the safety culture from its biggest customer.
Added to this …
Spirit’s cash on hand dropped to $352 million from $824 million at December end. The company posted a net loss of $617 million and burned through $444 million in the three months ended March 28, far more than analysts had expected.
My guess is the only reason the share price hasn’t tanked is the belief that Boeing will have to step in the acquire it and won’t want to wipe at the equity of all the management and staff given they’ll be employees of the new group.
Boeing’s talks to acquire Spirit have hit a roadblock due to complicated negotiations with Europe’s Airbus which now accounts for roughly one-fifth of Spirit’s revenues. Airbus wants to be paid to take on Spirit’s money-losing operations
