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April 8, 2020, 7:49 a.m. EDT

Spirit AeroSystems cuts pay, furloughs workers after Boeing suspends deliveries until further notice

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By Ciara Linnane

Spirit Aerosystems Holdings Inc. /zigman2/quotes/205043289/composite SPR -5.83% is taking a series of measures to cut costs after Boeing Co. /zigman2/quotes/208579720/composite BA +0.20% suspended all deliveries to its Washington state and South Carolina facilities until further notice. Measures include cutting 2,800 workers at its Wichita, Kansas operations and cutting 400 workers in Oklahoma. The company has launched a voluntary early retirement program for 850 hourly and salaried workers. It has deferred $120 million in capital expenditures and negotiated an amendment to credit facilities that will offer covenant relief into 2021. The company has secured a $375 million short-term delayed draw term loan facility. It has cut its dividend to a penny a share and will continue to suspend share buybacks. Pay for all U.S. executives has been cut by 20% until further notice and the company has furloughed all production workers and managers in Wichita, Kansas and Oklahoma that support Boeing programs. The company had a cash balance of about $1.83 billion as of April 2 and a debt balance of about $3.04 billion, Its $800 million revolver remains fully drawn. Shares rose 3.8% premarket but have fallen 75% in the year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.21% has fallen 18%.

/zigman2/quotes/205043289/composite
US : U.S.: NYSE
$ 22.93
-1.42 -5.83%
Volume: 8.79M
May 28, 2020 4:00p
P/E Ratio
11.83
Dividend Yield
0.17%
Market Cap
$2.57 billion
Rev. per Employee
$424,824
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/zigman2/quotes/208579720/composite
US : U.S.: NYSE
$ 149.82
+0.30 +0.20%
Volume: 34.57M
May 28, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$84.38 billion
Rev. per Employee
$660,961
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/zigman2/quotes/210599714/realtime
US : S&P US
3,029.73
-6.40 -0.21%
Volume: 3.13B
May 28, 2020 4:20p
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