Spirit AeroSystems [NYSE: SPR] announced today that it executed a Memorandum of Agreement (MOA) with The Boeing Company that establishes, among other items:
Prior agreements between Boeing and Spirit have memorialized a cost reduction program with respect to the Boeing 737 and pricing for the Boeing 747 and 777 models.
"This agreement further strengthens the long-standing partnership between Boeing and Spirit as it removes uncertainty well into the next decade. The agreement establishes pricing and capital investment for a range of potential production rate increases on the 737 program. With the new agreement, we expect price to exceed cost eventually on the 787 program. We are excited to continue to build on our relationship and look forward to future opportunities with our largest customer," said Spirit President and CEO Tom Gentile. "With this agreement, we maintain our target of 7 to 9 percent conversion of revenue to free cash flow."
Source: Spirit AeroSystems
Date: Dec 28, 2018