4/25/2011 12:40:00 PM
NEWS BRIEFS
B/E Aerospace Fastener Revenue Rises
B/E Aerospace reported sales in its Consumables Management segment, including fasteners, climbed 24% to $230.8 million, while operating earnings rose 21.2% to $44.6 million.
Segment operating margin of 19.3% was 50 basis points lower than the prior year due to the margin drag from the acquired Satair A/S’s aerospace fastener distribution business.
Order rates for spares and consumables continue to grow at double digit rates.
Overall Q1 revenues grew 29.5% to $600.2 million, reflecting the acquisitions of Satair and TSI Group Inc. Revenue growth for the first quarter of 2011 excluding the 2010 acquisitions from both periods was 17.3%.
Consolidated operating earnings of $100.1 million increased 39%, while the operating margin was 16.7% and expanded 120 basis points as compared with the prior year period. Operating earnings growth and operating margin expansion were driven by the higher sales volume, improved revenue mix and ongoing operational efficiency initiatives.
Q1 net earnings were $50.3 million.
“The global economy and global passenger traffic continued to recover, in spite of a number of challenges, including the effects of the tragic Japanese earthquake and tsunami, unprecedented unrest in the Middle East, the negative impact of record winter snowstorms and the upward pressure on oil prices,” stated CEO Amin Khoury.
“Our airline customers have responded rationally by carefully managing capacity and passing on cost increases in an orderly fashion. U.S. airlines have successfully implemented approximately 8 fare increases so far this year, more or less offsetting the higher cost of fuel.”
B/E Aerospace expects increasing aftermarket demand for consumables and commercial aircraft segment spares driven by the continuing growth in passenger traffic and capacity. The company also forecasts an increase in orders arising from the expected acceleration in deliveries of new wide-body aircraft beginning in 2011. ©2011 GlobalFastenerNews.com
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