Why Spirit AeroSystems Stock Is Flying High Today
Boeing (NYSE: BA) is reportedly in talks to acquire supplier Spirit AeroSystems (NYSE: SPR) in an attempt to gain control of its troubled supply chain. The talk has Spirit shares soaring, up 15.7% as of 11:15 a.m. ET Friday.
Spirit is the maker of a range of fuselages and other aerospace components primarily for Boeing and its archrival Airbus. The company was spun out of Boeing in 2005 as part of the aerospace giant's strategy to lower its costs by outsourcing more of its manufacturing, but Spirit has struggled almost from the start.
The two companies' fates have been tied together even after Spirit became independent. In recent years, some of the issues Boeing has had with its 737 MAX and other platforms have been blamed on Spirit. And the supplier has been unable to shake the shadow of Boeing, with its parent still accounting for about two-thirds of company revenue.
Source Fool.com
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