WICHITA, Kan. Spirit AeroSystems announced Thursday that it has reached an agreement with Boeing on the production rate of the 737 MAX. Under @SpiritAero www.spiritaero.com the agreement, Spirit will slowly resume production, increasing deliveries over the course of the year to a total of 216 MAX ships to be delivered to Boeing in 2020. Spirit does not plan to reach a production rate of 52 vessels per month by the end of 2022. The parties continue to negotiate other terms. Earlier agreements between Boeing and Spirit have recalled a cost-cutting program related to the Boeing 737 and prices of boeing 747 and 777 models. „This agreement further strengthens Boeing`s long-standing partnership with Spirit as it eliminates uncertainty for the next decade. The agreement sets prices and capital investments for a number of potential increases in the production rate for the 737 program. With the new agreement, we expect the price to exceed the cost of the 787 program.
We look forward to further expanding our relationship and look forward to future opportunities with our largest customer,“ said Tom Gentile, President and CEO of Spirit. „With this agreement, we are sticking to our goal of converting 7-9% of sales into free cash flow.“ The collective agreement is based on several assumptions, including Boeing`s expected production rate and the successful return to service of the 737 MAX. As previously announced, the 737 MAX contract agreement is a „demand agreement“ between Boeing and Spirit, and the tariff is subject to change at any time. Spirit said they would slowly resume production as part of the deal and increase deliveries later this year to a total of 216 Max ships delivered to Boeing in 2020. . This press release contains „forward-looking statements“ that may involve numerous risks and uncertainties. Forward-looking statements can generally be identified by the use of forward-looking words such as „seek“, „anticipate“, „believe“, „could“, „continue“, „estimate“, „expect“, „target“, „anticipate“, „intend“, „may“, „could“, „target“, „outlook“, „plan“, „predict“, „project“, „should“, „target“, „target“, „would“ and other similar words or expressions or their negative, unless the context requires contrary. These statements reflect management`s current views regarding future events and are subject to known and unknown risks and uncertainties. Our actual results may differ materially from those anticipated in the forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. These factors are not exhaustive and we cannot predict all factors that could cause actual results to differ materially from those expressed in our forward-looking statements. These factors apply only as of the date of this press release, and new factors may occur or changes may occur in the foregoing factors that could affect our business.
Except as required by law, we assume no obligation 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. Spirit said the company does not expect to achieve a production rate of 52 units of vessels per month by the end of 2022. The parties continue to negotiate other terms. . WICHITA, Kansas, 27. Dec. 2018 /PRNewswire/ — Spirit AeroSystems [NYSE: SPR] today announced the signing of a Memorandum of Understanding with The Boeing Company that states, among other things: A cautionary note regarding forward-looking statements regarding Spirit AeroSystems Inc. Spirit AeroSystems designs and builds aircraft structures for commercial and defense customers. .