ON AIR NOW

LISTEN NOW

Weather

clear-night
38°
Sunny
H 49° L 31°
  • clear-night
    38°
    Current Conditions
    Sunny. H 49° L 31°
  • clear-day
    61°
    Afternoon
    Sunny. H 49° L 31°
  • clear-night
    52°
    Evening
    Clear. H 67° L 40°
LISTEN
PAUSE
ERROR

Krmg news on demand

00:00 | 00:00

LISTEN
PAUSE
ERROR

Krmg traffic on demand

00:00 | 00:00

LISTEN
PAUSE
ERROR

Krmg weather on demand

00:00 | 00:00

Local
Spirit Aerosystems to sell Tulsa, McAlester facilities
Close

Spirit Aerosystems to sell Tulsa, McAlester facilities

Spirit Aerosystems to sell Tulsa, McAlester facilities
Photo Credit: Russell Mills

Spirit Aerosystems to sell Tulsa, McAlester facilities

Spirit Aerosystems has announced it will sell its facilities in Tulsa and McAlester.

The news came in an email from President and CEO Larry Lawson, obtained by KRMG news early Tuesday (see below).

Approximately 3,000 employees in the Tulsa facility could be affected by a potential sale.

Mike Neal, president and CEO of the Tulsa Regional Chamber, issued the following statement:

“Spirit AeroSystems has been a valued employer in the Tulsa region for more than 8 years. While the company has announced it will explore plans to sell its Oklahoma operations, there are many variables at play and it is too early to speculate what will be the final outcome.

“In the event the company sells its Tulsa operations, the Chamber, City of Tulsa and other workforce and economic development partners across the region will remain engaged in encouraging buyers to continue investment in the Tulsa operations and our highly-skilled aerospace and manufacturing workforce currently working at the plant. Many of these same experienced workers have long been a part of our community, working at the plant years before Spirit’s arrival under companies like Boeing and prior to that, Rockwell and McDonnell Douglas.

“We are encouraged to hear Spirit’s CEO Larry Lawson publicly acknowledge today the Tulsa plant is performing very well and improving. We realize companies across the world routinely explore possible divestitures for a multitude of reasons, and we will remain hopeful this process will result in a positive outcome for the Tulsa region."

Recently, British aerospace and car parts maker GKN expressed interest in buying the factory.

It's unclear if that announcement had anything to do with Spirit's decision to divest itself of its Oklahoma properties.

Here's the text of the email obtained by KRMG:

As you know, we are in the midst of a comprehensive review of our business and as we make strategic decisions, will share them along the way. Spirit is announcing today that it has begun a process to divest its Oklahoma sites. This decision is about where Spirit can best differentiate itself in the aerostructures marketplace and about future allocation of our resources. I can assure you that we didn’t come to this divestiture decision lightly; it was made after careful evaluation, and we are confident in the value of these sites. They include good people and solid programs with products in high demand. We believe these programs may better align with another company’s strategy and core competencies. We’re very proud of what we are accomplishing in Oklahoma, and we’re not going to let up in our intensity. However, it’s worth exploring whether there’s a better owner who is interested in growing within this market space. A different owner may have synergies in the supply chain, fabrication, or similar contract leverage.

 Additionally, the company announced today that we expect to record between a $350 million to $400 million pre-tax charge related primarily to the Gulfstream business jet programs. This charge and the decision to divest are separate issues. The charge is related primarily to forecasted cost growth in the Wing Segment in the years 2014-2021 with minimal cash flow impact in the current period.

 Related to the second quarter financial statements, the company’s auditors have not completed their review. The company will postpone the second quarter earnings release and make appropriate arrangements to reschedule a full earnings report once the review is complete. 

 The charges are one indication that our cost structure continues driving expenses that are too high. While these results don’t tell our full story, they are the hard data by which we are measured, and clearly we have to demand more of ourselves. Changes are never easy, but Spirit must make dramatic improvements in order to keep our company healthy in a competitive environment. We have to do what any good competitor does. When we get knocked down – we get back up, shake it off, and bring our “A-game” to get back on the winning track.

 We’re intensifying the focus around four key things: Disciplined decision making and market focus, Performance, Cost, and Cash Flow. And the good news is, although we have challenges, we also have some great fundamentals to work with. Spirit has a strong team, we are on the right programs, with a $38 billion backlog, we bring differentiating capability to the marketplace, and we are focused on strong program performance and cash generation. 

 Thank you for your hard work and strategic focus as we move toward becoming the world’s pre-eminent, low-cost commercial aerospace and defense supplier.

 

Sincerely,

 Larry Lawson

President & CEO

Spirit AeroSystems

Read More
VIEW COMMENTS

There are no comments yet. Be the first to post your thoughts. or Register.

  • If the thought of spending hours in the kitchen on Thursday just doesn’t sound like a good use of your time, what with family all around and the prospect of Black Friday shopping beginning at 7 a.m. that day, there are a variety of restaurants that just may have the answer for you. Several chain restaurants and many local ones are open on Thanksgiving, with options ranging from dining in to carrying out to catering the whole affair. Important note: Not all restaurants listed below will be open on Thanksgiving or offer special deals. Some franchise restaurants of certain chains may be closed. It is important to call the restaurant closest to you to confirm the hours and deals. These restaurants are set to be open on Thanksgiving.
  • The city of Everett, Washington, ,” but the baristas are not backing down. The baristas are arguing that their skimpy costumes fall under freedom of expression.In recent court filings, the city claimed the coffee stands have a history of prostitution, sexual assault and exploitation. One of Everett's new laws requires the workers to wear a minimum of tank tops and shorts. It specifically applies to employees at 'quick service' restaurants, which also include fast food and food trucks. >> Read more trending news The other redefined the city's lewd conduct ordinance and created a new crime of facilitating lewd conduct. Both ordinances took effect in early September. But seven bikini baristas and the owner of a chain of the coffee stands called 'Hillbilly Hotties' sued the city to block the dress code in September, saying it's vague, unlawfully targets women, and denies them the ability to communicate through their attire.  KIRO-TV asked a constitutional law attorney about that argument.  “That is not a frivolous argument. One can see that this is conduct which may not be pure speech, but nevertheless is a conduct that does enjoy constitutional protections. The question is how much constitutional protection,” said constitutional law attorney Jeffrey Needle. The Everett City Council unanimously passed the ordinances in August but halted the ban while the case is in court.  A senior U.S. district court judge heard the arguments Tuesday in a federal Seattle court.
  • Decades after they were banned from the airwaves, Big Tobacco companies return to prime-time television this weekend — but not by choice. Under court order, the tobacco industry for the first time will be forced to advertise the deadly, addictive effects of smoking, more than 11 years after a judge ruled that the companies had misled the public about the dangers of cigarettes. But years of legal push back by the industry over every detail means the ads will be less hard-hitting than what was proposed. Tobacco control experts say the campaign — built around network TV and newspapers — will not reach people when they are young and most likely to start smoking. “Their legal strategy is always obstruct, delay, create confusion and buy more time,” said Ruth Malone, of the University of California, San Francisco, who has studied the industry for 20 years. “So by the time this was finally settled, newspapers have a much smaller readership, and nowadays, who watches network TV?” The new spots, which begin Sunday, lay out the toll of smoking in blunt text and voiceover statements: “More people die every year from smoking than from murder, AIDS, suicide, drugs, car crashes and alcohol, combined.” Companies will also acknowledge their role in making cigarettes addictive: “Cigarette companies intentionally designed cigarettes with enough nicotine to create and sustain addiction.”
  • On Black Friday, you’ll want to know which items to stand in line for, and which items to buy after the holiday season has passed. You can end up saving a lot of money (and time) by shopping smart as you weave your way through the crowds or shop online. They may not be the sexiest of gifts, but small and large home appliances often are priced to sell on Black Friday. From electric mixers and coffeemakers to refrigerators and dishwashers, says it’s worth checking out the deals on these items on Black Friday.While some analysts say January, leading up to the Super Bowl, is the best time to find a television at a good price, there are still plenty of TV deals on Black Friday. Keep in mind that lower-end models tend to be priced the most competitively, making Black Friday the perfect time to pick up a television for a second bedroom or the kids’ room. If you are looking for a high-end television, it’s better to wait until after Black Friday.: Shoppers will find many basic laptop models at bargain-basement prices on Black Friday. Power users looking for good deals on high-end laptops should wait until after Black Friday.The same logic applies to tablets. There will be plenty of Black Friday doorbusters featuring basic tablet models; just don’t expect steep discounts on iPads.says gaming system bundles should receive good discounts on Black Friday. In years past, gaming system bundles have been priced up to $50 off the regular price on Black Friday. The furniture sales cycle resets in the summer, so if you wait until Black Friday, you won’t be getting the best deals, according to . And while buying outdoor furniture in winter might seem like a wise plan, retail experts say most of that merchandise has been removed from the floor to make room for holiday items by Black Friday, so you won’t find great deals on the remaining products. Unless your child is hoping for one of this year’s hottest toys, it’s actually better to wait until Cyber Monday or early December to shop for toys, according to . The toy that is priced up to half-off on Black Friday may end up being priced up to 75 percent off if you wait.Avoid spending your shopping money on winter clothing during Black Friday, because it generally sells at a much deeper discount soon after the holiday season ends. You might think that the best time to purchase workout equipment is during Black Friday, but the biggest deals on fitness equipment actually take place right after the turn of the new year.: You can still get your husband that tool set he’s been wanting for Christmas, just wait to purchase it until December, when tools and equipment sell for the largest discounts.There are rarely good deals on gift card purchases on Black Friday. The Street says this is because gift cards are the gift choice of procrastinators, so wait until just before Christmas to score better deals. Although you might want to buy a few special ornaments or decorations for your house on Black Friday, plan ahead by purchasing next year’s décor right after Christmas, when seasonal items are sold at clearance prices.
  • A U.S. Navy aircraft with 11 people on board has crashed into the Pacific Ocean, officials said Wednesday. >> Click here or scroll down for the latest updates >> Read more trending news