Spirit AeroSystems Holdings, Inc. (NYSE:SPR) Q2 2023 Earnings Conference Call August 2, 2023 11:00 AM ET

Company Participants

Ryan Avey - Senior Director, IR & FP&A

Tom Gentile - President and CEO

Mark Suchinski - SVP and CFO

Conference Call Participants

Myles Walton - Wolfe Research

Steve Strackhouse - RBC Capital Markets

David Strauss - Barclays

Seth Seifman - JPMorgan

Rob Spingarn - Melius Research

Sheila Kahyaoglu - Jefferies

Doug Harned - Bernstein

George Shapiro - Shapiro Research

Cai von Rumohr - TD Cowen

Kristine Liwag - Morgan Stanley

Michael Ciarmoli - Truist Securities

Ron Epstein - Bank of America

Peter Arment - Baird

Operator

Good morning ladies and gentlemen and welcome to Spirit AeroSystems Holdings, Inc. Second Quarter 2023 Earnings Conference Call. My name is Jordan and I'll be your coordinator today. [Operator Instructions]

I'd now like to turn the presentation over to Ryan Avey, Senior Director of Investor Relations and FP&A. Please proceed.

Ryan Avey

Thank you, Jordan and good morning everyone. I'm Ryan Avey and with me today are Spirit's President and Chief Executive Officer, Tom Gentile; Senior Vice President and Chief Financial Officer, Mark Suchinski; and President of Commercial and Chief Operating Officer, Sam Marnick.

Before we begin, I need to remind you that any projections or goals we may include in our discussion today are likely to involve risks, including those detailed in our earnings release and our SEC filings and in the forward-looking statement at the end of this web presentation. In addition, we refer you to our earnings release and presentation for disclosures and reconciliation of non-GAAP measures we use when discussing our results.

With that, I'd like to turn the call over to our Chief Executive Officer, Tom Gentile.

Tom Gentile

Thank you, Ryan and good morning everyone. Welcome to Spirit's second quarter results call. I'll begin today by discussing the IAM contract and providing an update on the 737 vertical fin attached fitting progress.

On the IAM contract, we are very pleased to have in place a four-year contract with our IAM represented employees, which reflects the gratitude we have for their contributions.

While the first vote resulted in a work stoppage, we quickly went back to the table with our union partners and reached a resolution. Due to the work stoppage from the strike, we now expect to deliver between 370 and 390 737 fuselages this year.

The front of our production line is starting to break to 42 airplanes per month in August, but we won't be able to fully recover the lost manufacturing days from the work stoppage and the subsequent resumption of full production at our Wichita site. Mark will walk you through some of the financial impacts related to the new contract and work stoppage in his comments.