3/8/2016 1:41:00 PM
NEWS BRIEFS
KLX Reports Record Aerospace Fastener Sales
KLX Inc. reported consolidated sales – primarily from fasteners – declined 7.6% to $1.6 billion in 2015, with operating earnings of $170.9 million and adjusted EBITDA of $261.7 million.
Full-year Aerospace Solutions Group revenue at KLX – the former Consumables Management segment of B/E Aerospace – rose 2.2% to $1.3 billion, with operating earnings dropping 31% to $102.8 million.
“Our ASG business delivered market leading performance in 2015 driven by solid demand from our commercial aerospace manufacturing customers, offset by a decline in demand from our military and business jet customers,” stated CEO Amin Khoury.
He added: “Although we expect continued weak demand from our business jet manufacturing customers in 2016 and 2017, we do expect a significant upswing in 2018 as numerous new business jet aircraft types enter into service.”
Energy Services Group revenue declined 33.9% to $254.9 million, while the segment recorded a $69.7 million loss for the year.
KLX recorded a $640 million pre-tax, non-cash impairment charge in the third quarter of 2015, and an $11 million after-tax charge in the fourth quarter of 2015 related to cost reduction initiatives at both its ASG and ESG business segments.
Consolidated fourth-quarter revenue fell 18.7% to $358.2 million, reflecting a 3.4% year over year decline in ASG revenues (2% decline on a constant currency basis) to $306.1 million and a 57.9% decline in ESG revenues to $52.1 million.
Q4 operating earnings dipped 43.7% to $170.9 million and adjusted EBITDA was down 31% to $261.7 million. Web: klxaerospace.com
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