WICHITA, Kan. (AP) — Spirit Aerosystems Chief Financial Officer Jose Garcia has resigned as the aircraft parts maker found it did not comply with its established accounting processes.
Spirit said Thursday that it started a review of its accounting process compliance in December and has since found that it didn't comply with the accounting processes related to certain potential contingent liabilities that it received after the end of 2019’s third quarter.
Spirit said it doesn't believe the non-compliance will result in a third-quarter financial restatement or materially impact its financial statements for fiscal year 2019. But the company said the review is ongoing and no final conclusion has been made.
Spirit added that Garcia and John Gilson, who served as vice president, controller and principal accounting officer, resigned in light of the findings. Spirit has been in touch with the Securities and Exchange Commission about the matter and anticipates fully cooperating with any inquiries it may have.
Spirit said it's taking steps to strengthen procedures related to contingent liabilities of this type to make sure they're processed correctly in the future. The company expects to file its Form 10-K for the fiscal 2019 financial results by the SEC's deadline, which is typically 60 days after the end of the fiscal year.
Garcia will be succeeded by Mark Suchinski, who is currently Spirit's vice president of quality. He has held a various roles at the company, including serving as controller and principal accounting officer from 2014 to 2018.
Spirit also announced Thursday that it'll slowly restart production of 737 Max airplane components after reaching a deal with Boeing. The company said it will ramp up deliveries throughout the year to reach a total of 216 MAX shipsets delivered to Boeing in 2020.
The company, which is a key supplier to Boeing, announced earlier this month it would lay off more than 20% of its workforce in Kansas.