Spirit AeroSystems Reduces Quarterly Cash Dividend Due to 737 MAX Production
WICHITA, Kan., Feb. 7, 2020 /PRNewswire/ -- Spirit AeroSystems (NYSE:SPR) announced its Board of Directors declared a quarterly $0.01 per share cash dividend on its outstanding common stock on February 6. The dividend is payable April 9, 2020, to stockholders of record as of the close of business on March 20, 2020.
"In an abundance of caution, the Board concluded that it is in the best interests of Spirit and its stockholders to reduce Spirit's quarterly dividend," said Spirit AeroSystems President and CEO Tom Gentile. "Spirit has a strong history of capital returns through dividends and share repurchases and remains committed to returning capital to stockholders. However, given the significance of the 737 MAX program to Spirit, the Board believes it is prudent to preserve liquidity until production rates are at higher levels."
"The Company's Board will consider further action with respect to the dividend in the future, upon the MAX's return to service and further production stabilization, as appropriate and in line with Spirit's disciplined capital allocation strategy," Gentile added. "While we are going through this challenging period of lower rate production, the outlook for the MAX remains strong with a backlog of 4,400 aircraft."
The Board regularly evaluates the Company's capital allocation strategy and dividend policy. Any future determination regarding dividends will be at the discretion of the Board and will depend upon, among other factors, results of operations, financial condition, capital requirements and contractual restrictions.
On the web: www.spiritaero.com
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About Spirit AeroSystems Inc.
Spirit AeroSystems designs and builds aerostructures for both commercial and defense customers. With headquarters in Wichita, Kansas, Spirit operates sites in the U.S., U.K., France and Malaysia. The company's core products include fuselages, pylons, nacelles and wing components for the world's premier aircraft. Spirit AeroSystems focuses on affordable, innovative composite and aluminum manufacturing solutions to support customers around the globe. 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 timing and conditions surrounding the return to service of the 737 MAX and any related impacts on our production rate; our reliance on Boeing for a significant portion of our revenues; our ability to execute our growth strategy, including our ability to timely complete and integrate our announced Asco and Bombardier acquisitions; our ability to accurately estimate and manage performance, cost, and revenue under our contracts; economic 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; the on-going review of our accounting processes and the potential effect on our financial statements; 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.
SOURCE Spirit AeroSystems