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About Fiber Materials Inc.

Spirit AeroSystems Holdings is one of the largest independent non-OEM makers of commercial and military airplane components, such as fuselages, propulsion systems, wings, and wing components. It designs and builds aerostructures for every Boeing aircraft currently in production (including the majority of aerostructures for Boeing's 737) as well as for Boeing's chief rival, Airbus. It is a key supplier of wing parts for Airbus' A320 aircraft. Sales from Boeing and Airbus represent 95% of the company's business. Spirit AeroSystems also provides maintenance, repair, and overhaul (MRO) services. The company maintains operations in the US, the UK, and Asia; however, the US is its largest market.

Operations

Spirit AeroSystems' operations are divided among three segments. Fuselage Systems is its largest, generating about 55% of total sales. Propulsion Systems accounts for about a 25% and Wing Systems earns around 20% of revenue.

The Fuselage Systems segment manufactures forward, mid, and rear fuselage sections and systems. The forward section houses the flight deck, passenger cabin, and cargo area. This segment also manufactures the floor beams for the fuselage and provides maintenance, repair, and overhaul (MRO) services.

The Propulsion Systems segment produces nacelles, the aerodynamic structure surrounding the aircraft engine, and struts and pylons that connect the engine to the wing. It also makes related engine structural components and provides MRO services. Wing Systems makes aircraft wings including the spars, ribs, stringers, and fixed leading edges and trailing edges of wings. It also makes wing components such as flaps and slats (flight control surfaces) and other miscellaneous structural parts.

In addition, the company also offers engineering, tooling, and measurement services.

Geographic Reach

Spirit AeroSystems' headquarters facilities in Wichita, Kansas also includes a manufacturing facility. The US is the company's largest market, accounting for nearly 85% of total sales, while the UK generates about 10%.

In addition to its manufacturing plant in Wichita, Spirit AeroSystems maintains seven other manufacturing facilities in the US, Scotland, France, and Malaysia. It also operates through an international network of suppliers in more than 25 countries.

Sales and Marketing

About 80% of the company's revenue comes from Boeing, since Spirit AeroSystems started out as an internal supplier for Boeing aircraft. Airbus accounts for around 15%. This may seem risky but the company is the only source for most of its products, and its contracts give Sprit supplier rights for the life of the aircraft program for most models. Other customers include Lockheed Martin, Northrop Grumman, Sikorsky, Rolls-Royce, and Mitsubishi Aircraft Corporation, as well as the US government and major defense contractors.

Financial Performance

Spirit AeroSystems has seen a general upward trend in revenue over the last several years. Net sales in 2019 amounted to $7.9 billion, up 9% from $7.2 billion the previous year. The uptick in 2019 is attributed to production increases in B777, B787, A220, and A350 XWB programs, offset by lower production on the B737.

Net income was $530.1 million compared with $617 million in 2018. The decrease in profit was generally due to increased sales and cost of sales.

Cash at the end of fiscal 2019, was $2.4 billion, an increase of $1.6 billion from the prior year. Cash from operations contributed $922.7 million to the coffers, while investing activities used $239.9 million, mainly for the purchase of property, plant, and equipment. Financing activities provided $884.4 million.

Strategy

The company continue to focus on business growth through the application of key strengths, including design for manufacturability, materials utilization expertise, targeted automation, advanced tooling and testing concepts, and determinate assembly to enable cost-effective, highly efficient production. It also invest in new technology to bring the most advanced techniques, manufacturing, and automation to our customers.

Spirit recently launched an automated factory and digitization initiative that uses digital factory tools and simulators to cut down on the time needed to ramp up production on new projects. To improve production efficiencies and inventory management, the company is building a new 50,000 square foot logistics center in Malaysia and a new Global Digital Logistics Center in Wichita, KS.

The company is investing in research and development to boost product sales and increase its margins. It's building an Aerospace Innovation Center in Prestwick, Scotland (scheduled for completion in late September 2020) where Spirit will focus on infusion processes for composite materials, part handling, assembly automation, rapid prototyping, and virtual and augmented reality technology. In Wichita, the company partnered with Norsk Titanium to create additive-manufactured titanium components, which allow for parts to be built to a "near-net" shape before being finished. The process reduces waste as well as product costs.

Spirit AeroSystems initiates workforce actions due to expected lower levels of 737 MAX productions. In early 2020, the company issued a notice under the Worker Adjustment and Retraining Notification Act of layoffs affecting approximately 2,800 employees at its Wichita, Kansas facility. Spirit has taken steps to lessen the impact of expected layoffs, transferring some 737 MAX employees to other programs where possible. Additionally, Spirit plans to facilitate job fairs with other aerospace companies to help laid-off employees transition to new jobs.

Mergers and Acquisitions

Late in 2019, Spirit AeroSystems said it would buy the aerostructures business of Canada-based Bombardier for a total consideration of about $500 million. The deal includes Bombardier's aerostructures and aftermarket services operations in Belfast, Northern Ireland; Casablanca, Morocco; and Dallas. The acquisition will also give Spirit Aerosystems the ability to supply composite wings for the Airbus A220 while growing the company's low-cost country footprint and boosting its aftermarket business.

Earlier in 2019, the company agreed to acquire S.R.I.F., N.V., the parent company of Asco Industries, for $420 million. Asco makes high lift wing structures, mechanical assemblies, and functional components for OEMs and Tier-1 suppliers in the commercial aerospace and military markets. The acquisition will add more capabilities to its Airbus and F-35 aircraft and expands the company's fabrication business.

Company Background

The company was founded in 2005 when Boeing spun off its Wichita Division and Oklahoma operations as a new entity, Spirit AeroSystems. Spirit grew into a global supplier with multiple customers and platforms, acquiring the aerostructures business from BAE Systems (now operating as Spirit AeroSystems (Europe) Limited). 

The company later acquired other aerospace companies expanding globally with manufacturing facilities in Malaysia and France, and with additional facilities in North Carolina in the US. 

Fiber Materials Inc.

5 Morin St
Biddeford, ME 04005-4414
Phone: 1 (207) 282-5911

Firm Stats

Employer Type: Privately Owned
Senior Client Manager, Endurance Sports: Noyes Christopher
Kitchen Manager: Godbout Dan
Ehs Manager: Jason Hyde
Employees (This Location): 131
Employees (All Locations): 160

Major Office Locations

Biddeford, ME