10/26/2010 2:05:00 PM
NEWS BRIEFS
B/E Aerospace: ‘Substantial’ Margin Growth in Fastener Segment
“Solid revenue growth and substantial margin expansion” at B/E Aerospace’s consumables management segment, including fasteners, drove third quarter revenue up 6.7% to $193.1 million. Segment operating earnings increased 20.9% to $40.5 million.
However, nine-month sales in consumables management declined 7.2% to $572.3 million, with operating earnings dropping 1% to $115.5 million.
Overall Q3 revenues gained 7.7% to $495 million, with net earnings increasing 13.6% to $41 million.
In September B/E Aerospace commenced a $650 million public offering of its senior notes. The Wellington, FL-based company said it intends to use the proceeds to “fund acquisitions of businesses operating within, or complementary to” its fastener distribution segment, Consumables Management, as well as its commercial aircraft segment.
In 2008 B/E Aerospace bought Honeywell’s aerospace fastener distribution business, Honeywell Consumable Solutions, for $1.06 billion, transforming B/E Aerospace into one of the largest distributors of aerospace fasteners in the world.
In the opening weeks of the fourth quarter B/E Aerospace initiated two acquisitions: TSI on October 4, 2010, and Satair’s aerospace fastener distribution business on October 25, 2010, for an aggregate purchase price of approximately $475 million. ©2010 GlobalFastenerNews.com
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