Spirit AeroSystems Statement on Possible Flawed Parts from MPS

Rhea-AI Summary

Boeing informed Spirit AeroSystems (NYSE: SPR) about potential defective parts from Manufacturing Process Specification srl (MPS) in Italy, dating back to 2017. Spirit confirmed it does not acquire parts directly from MPS and assured that only approved parts have been shipped. Boeing revoked MPS's approval after identifying flawed parts from its sub-tier suppliers. Spirit reiterated its commitment to quality and safety and has collaborated with Boeing throughout the issue to ensure customer trust.

Positive

• Spirit maintained collaboration with Boeing, ensuring only approved parts are shipped.
• The company emphasizes its commitment to quality and safety, which is vital for maintaining customer trust.

Negative

• Boeing's communication raises concerns about quality control within the supply chain.
• The issue may impact Spirit's reputation if customers doubt the quality of its parts.

WICHITA, Kan.--(BUSINESS WIRE)-- From March through July 2021, Boeing issued communications to its supply chain including Spirit AeroSystems Holdings, Inc. [NYSE: SPR] , identifying possible flawed parts, dating back to 2017 from Manufacturing Process Specification srl (MPS), based in Italy. Spirit does not buy parts or services directly from MPS. In its initial communication, Boeing stated that it had revoked approval of MPS. Upon receipt of information from Boeing identifying parts from sub-tier suppliers which used MPS, Spirit took appropriate action. Spirit has worked with Boeing throughout this process and has only shipped parts approved by Boeing. Spirit continues to focus on quality and safety with our customers as a top priority.

On the web: www.spiritaero.com
On Twitter: @SpiritAero

About Spirit AeroSystems Inc.

Spirit AeroSystems is one of the world’s largest manufacturers of aerostructures for commercial airplanes, defense platforms, and business/regional jets. With expertise in aluminum and advanced composite manufacturing solutions, the company’s core products include fuselages, integrated wings and wing components, pylons, and nacelles. We are leveraging decades of design and manufacturing expertise to be the most innovative and reliable supplier of military aerostructures, and specialty high-temperature materials, enabling warfighters to execute complex, critical missions. Spirit also serves the aftermarket for commercial and business/regional jets. Headquartered in Wichita, Kansas, Spirit has facilities in the U.S., U.K., France, Malaysia and Morocco. 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 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, without limitation, the impact of the COVID-19 pandemic on our business and operations; the timing and conditions surrounding the full worldwide return to service (including receiving the remaining regulatory approvals) of the B737 MAX, future demand for the aircraft, and any residual impacts of the B737 MAX grounding on production rates for the aircraft; our reliance on Boeing for a significant portion of our revenues; our ability to execute our growth strategy, including our ability to complete and integrate acquisitions; our ability to accurately estimate and manage performance, cost, and revenue under our contracts; demand for our products and services and the effect of economic or geopolitical conditions in the industries and markets in which we operate in the U.S. and globally; our ability to manage our liquidity, borrow additional funds or refinance debt; and other factors disclosed in our filings with the Securities and Exchange Commission. 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. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211015005588/en/

Forrest Gossett

(316) 803-2975

forrest.s.gossett@spiritaero.com

Source: Spirit AeroSystems Inc.

FAQ

What did Boeing inform Spirit AeroSystems regarding flawed parts?

Boeing notified Spirit AeroSystems about potential defective parts from MPS, affecting components dating back to 2017.

How has Spirit AeroSystems responded to Boeing's concerns?

Spirit AeroSystems confirmed it doesn't buy directly from MPS and has only shipped parts approved by Boeing.

What impact could the defective parts issue have on Spirit AeroSystems (SPR)?

The situation could affect Spirit's reputation and customer trust if concerns about quality persist.

When did Boeing identify the flaws in parts supplied to Spirit AeroSystems?

Boeing identified the potential flaws from March to July 2021.

What is Spirit AeroSystems' commitment regarding product quality?

Spirit AeroSystems emphasizes quality and safety as a top priority in its operations.