Spirit AeroSystems stock price target cut to $77 from $105 at BofA Securities

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Boeing supplier Spirit Aero to layoff 2,800 workers in wake of 737 Max debacle

Spirit AeroSystems Holdings Inc. , which supplies Boeing Co.’s 737 Max fuselage, wing components and other structures, said Friday it would lay off about 2,800 workers at its Wichita, Kansas plant and expects more layoffs affecting workers in two of its plants in Oklahoma later this month. “Spirit is taking this action because of the 737 Max production suspension and ongoing uncertainty regarding the timing of when production will resume and the level of production when it does resume,” the company said in a statement. Boeing’s 737 Max have been grounded worldwide since March after two deadly crashes less than five months apart. Spirit is a “significant supplier” on the 737 Max program, making about 70% of the plane’s structure. Boeing has not notified Spirit of how long the production suspension will last, or what the production rate will be in the future, but the company believes that when production does resume it will be at a lower rate, it said, in part because would need to use up more than 100 Max jet shipsets stored with Spirit, in addition to the several hundred 737 Max jets built but not yet delivered to customers. “Based on final production rates agreed with Boeing, Spirit may have to take additional workforce actions in the future,” the Wichita-based company said.

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