Dive Brief:

•  The largest Boeing 737 MAX supplier ​has ousted its CFO and controller following an internal accounting probe.

• Spirit AeroSystems Holdings, the supplier, said CFO Jose Garcia has resigned "with immediate effect," and would be replaced by Mark Suchinski, who had served as company controller from 2014 to 2018. John Gilson, controller and principal accounting officer, also resigned; he will be replaced on an interim basis by Damon Ward.

• Wichita, Kansas-based Spirit, which manufactures engine and wing parts for Boeing, was already in free fall following Boeing’s MAX production suspension following two crashes last year. 

Dive Insight:

The grounded Boeing 737 MAX aircraft accounted for half of Spirit’s sales and profits, The Wall Street Journal reported, and the company has plans to lay off one third of its workforce previously dedicated to MAX production.

The manufacturer claimed Garcia and Gilson stepped down after the company discovered a lack of compliance with accounting processes related to "certain potential contingent liabilities received after the end of third quarter 2019."  

"As of today, Spirit believes this non-compliance will not result in a restatement of Spirit's financial statements for the third quarter [...] or materially impact the financial statements for the fiscal year ended December 31, 2019," the release stated. "However, the review is ongoing and no final conclusion has been made. In light of these findings, Garcia and Gilson tendered their resignations. Spirit has communicated about this matter with the Securities and Exchange Commission and anticipates fully cooperating with any inquiries the Commission may have."

The review, which is ongoing, was prompted by information Spirit received last month via compliance processes, the Journal reported.

In a separate release, Spirit said it had pushed back its planned purchase of fluid automation manufacturer Asco, which had been part of Spirit’s efforts to pivot away from Boeing.