Spirit AeroSystems (SPR) stock surged on Wednesday after the company reached a production deal with Boeing (BA) to bolster its production system after quality concerns delayed Boeing deliveries.
The agreement follows a series of flaws discovered earlier this year involving Spirit AeroSystems that halted and delayed Boeing deliveries, prompting Boeing to warn that it may miss its delivery objectives for the year.
“Our collective groups will focus on further generating supply chain performance and resiliency,” said Boeing President and CEO Patrick M. Shanahan, adding that a “joined effort to synchronize our production systems will enable greater market responsiveness and delivery assurance.”
“Boeing and Spirit are going to keep to work shoulder to shoulder to mitigate today’s operational challenges,” said Spirit AeroSystems in a statement announcing the deal.
As of 3 p.m., Spirit AeroSystems shares were up more than 23%. ET on Wednesday as a result of the announcement, while Boeing shares were barely moved. However, both firms’ shares were still down for the year, with Boeing down almost 5% and Spirit AeroSystems down over 30% year to date.