(Adds detail on appointment, stock price, analyst comments)
By Alwyn Scott
NEW YORK, June 8 (Reuters) - Aircraft parts maker Spirit
AeroSystems Holdings Inc SPR.N named Chief Operating Officer
Tom Gentile to succeed Chief Executive Larry Lawson on
Wednesday, a long-expected move - but the company's shares fell
3.5 percent.
Gentile, 51, a former General Electric (NYSE:GE) Co GE.N executive
who became operating chief in April, had been widely seen as
preparing to take on Lawson's role.
Lawson, 58, who will retire on July 31, is credited with
restoring Spirit's profitability after steep losses in 2013.
The Wichita, Kansas-based company is a major supplier to
Boeing (NYSE:BA) Co BA.N , Airbus SA AIR.PA , Bombardier Inc BBDb.TO
and other plane and helicopter makers. It was formed in 2005 in
a spin-off of assets from Boeing.
Analysts said the stock decline reflected Lawson's strong
performance and concern that more leadership turnover might be
in store.
"But the news is not a total surprise and (Spirit's) low
valuation should limit downside as well," Seth Seifman, analyst
at JP Morgan, said in a note to clients. He kept the stock rated
"overweight."
The new CEO "may want to put more of his own people in key
positions," Canaccord Genuity analyst Ken Herbert wrote in a
note, adding "we do not necessarily view this as a negative."
Lawson's changes likely "will continue to play out" and
"provide meaningful contributions to longer term (free cash
flow) and earnings," he added. Herbert rates the stock a "buy".
Spirit shares were down 3.5 percent at $45.80 in mid-day
trading on the New York Stock Exchange.
After a long career as a Lockheed Martin Corp (NYSE:LMT) LMT.N
executive, Lawson joined Spirit in early 2013, the year it
reported a $621.4 million loss. In 2014, profit rose to $358.8
million, and it more than doubled to $788.7 million in 2015.
Lawson will receive a cash award of $1.1 million for 2016
and a separation payment of about $1.3 million, which is equal
to one year of his current base salary, the company said.
The leadership transition will take place in coming weeks
and Gentile will become CEO after Lawson retires, the company
said.
Reuters reported in January that Spirit was interviewing
candidates for the COO job, which had been vacant since 2013,
with an eye toward elevating the successful candidate to the top
job when Lawson eventually retires.
Spirit last month moved to retain Chief Financial Officer
Sanjay Kapoor by providing stock that vests over two years and
increasing his base salary and bonus.
(Additional reporting Arunima Banerjee in Bengaluru; Editing by
Saumyadeb Chakrabarty and Bernard Orr)