Losses at aircraft parts maker Spirit AeroSystems’ Belfast business topped €430 million last year, new figures show.
The aerospace multinational owns Shorts Brothers in Belfast, which rival aircraft manufacturers Airbus and Boeing look poised to share in a break up of the company sparked by the latter’s bid for Spirit.
Accounts filed by Short Brothers plc show it lost $504.1 million (€436 million) last year, about 50 per cent more than the $338 million loss the company reported for 2023.
The historic plant, which makes wings and other parts for aircraft manufacturers, has been caught up in US giant Boeing’s $4.7 billion takeover of Spirit Aerospace Systems.
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Boeing recently confirmed that it would take over part of the Shorts facility as a consequence.
That means it will share the Belfast complex with European manufacturer Airbus, its main rival in global commercial aircraft production.
Airbus agreed earlier this year to take over part of the business that makes wings for its A220 jets, and said it would, if necessary, take on another element that produces part of the fuselages for the same model.
About people 3,500 people work in Shorts. The Airbus deal secured 1,500 of those jobs, but doubts remain about the remaining 2,000, who work on making parts for Boeing and other aerospace manufacturers including Bombardier and Rolls-Royce.
Boeing’s statement confirming its move earlier this month gave no indication about its plans for that section of the workforce.
The Belfast plant’s former owner, Canadian manufacturer, Bombardier, which is also among its customers, had been in the running to take on the parts of the business that were not part of the Airbus agreement.
Shorts Brothers figures show that turnover grew 11 per cent last year to almost $805 million, from $723 million in 2023.
A $260 million charge for the likely cost of fulfilling contracts after taking inflation, disruption to supplies and other costs, added to its costs, as did more than $140 million in exceptional costs, including a fall in the value of assets.
Net liabilities grew $488 million to $944 million on December 31st. The company blamed onerous contract provisions, asset impairments, intercompany loans and other costs for this.
An assessment of the company’s ability to continue as a going concern notes that it has commitments to deliver wings to Airbus up to September next year.
It points out that high costs and other barriers make it difficult for aircraft manufacturers to switch suppliers during the course of a contract.
Airbus has already indicated that it intends to continue supporting the Shorts operation.
Ownership of the Belfast site has passed from the UK government to Bombardier and then to Spirit over decades.
The current carve up stems from Boeing’s move to reacquire Spirit, which the US giant off in 2005.
