About 40 analysts and major shareholders will be in Wichita Tuesday and Wednesday for “Investor Day” at Spirit AeroSystems.
Participants will take factory tours Tuesday followed by management presentations on Wednesday, said Spirit spokesman Ken Evans.
“It’s a good way for us in one day to give them an update outside of earnings,” Evans said of the reason for the event. “It’s much broader.”
Company officials will talk about goals for the year, its financial performance, partnerships with employees and other issues.
“It’s a good touch point with major shareholders and stockholders,” Evans said.
Spirit’s last Investor Day was held in 2009.
Peter Arment, an analyst with Sterne Agee Group, wrote in an analyst note that he expected management to provide further insight on the “improving risk profile within development programs coupled with meaningful gains on higher volumes in mature platforms.”
Arment went on to say that Spirit is well positioned to benefit from a 40 percent increase in large commercial aircraft production by the manufacturers through 2014. More than 50 percent of its sales are generated from Boeing’s 737 program. The 777 program contributes 15 percent of its sales.
In the meantime,” the 787 will quickly become the number two revenue-generating program as it ramps up during the next three years”, he wrote.
In addition, it looks as if Spirit is turning the corner as more development programs transition into production, Ament wrote.
The 787 remains the number one program at risk given the dollars at stake, he wrote.
The A350-WXB can still see cost pressures, but its contract structure is more favorable than the 787, Arment said in the note.
The A350 program recorded forward losses of $3 million in the fourth quarter last year because of continued engineering design changes. The Gulfstream G280 program has also struggled because of higher supply chain costs, but there are opportunities to invest in further automation, which will enable efficiencies as production increases, he wrote. And the 747-8 program remains in a forward loss because of increases program costs coupled with a small accounting block.