9/28/2010
HEADLINES
B/E Aerospace Raises Funds for Fastener Acquisitions

B/E Fastener Earnings Up
B/E Aerospace’s fastener business, Consumables Management, improved its earnings during the second quarter of 2010, boosted by “significant margin expansion.” 

Operating earnings gained 6.7% to $38.2 million despite a 1.8% drop in sales during Q2. Sequentially, second quarter 2010 CMS revenues increased 3.8% as compared with the previous quarter.

 

Six-month CMS revenues dropped 13% to $379.2 million, but bookings in the first half of 2010 increased more than 10% sequentially. First half operating earnings declined 9.9%, though earnings increased 10.6% on a 4.7% increase in revenues sequentially.

 

“Based upon our expectation of a continued expansion in orders and backlog and a continued recovery in our commercial aircraft segment spares and consumables businesses during 2010 as well as higher levels of wide-body aircraft deliveries in 2011, we expect a significant increase in revenues, earnings and cash flows beginning in 2011,” stated CEO Amin Khoury in July. ©2010 GlobalFastenerNews.com

B/E Aerospace commenced a $650 million public offering of its senior notes.
 

Wellington, FL-based B/E Aerospace intends to use the proceeds to “fund acquisitions of businesses operating within, or complementary to” its fastener distribution segment, Consumables Management, as its commercial aircraft segment.

The company said it has no definitive agreements with prospective companies at present, but that discussions are ongoing.
 

“(We are) currently exploring or participating in discussions with third parties regarding a number of possible acquisitions,” B/E Aerospace stated.
 

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.
 

B/E Aerospace’s fastener business, Consumables Management, improved its earnings during the second quarter of 2010, boosted by “significant margin expansion.” 
 

Operating earnings gained 6.7% to $38.2 million despite a 1.8% drop in sales during Q2. Sequentially, second quarter 2010 CMS revenues increased 3.8% as compared with the previous quarter.  ©2010 GlobalFastenerNews.com

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Related Links:

• B/E Aerospace