B/E Sales & Earnings Improve

Jason Sandefur

B/E Aerospace reported net sales for its distribution segment, including fasteners, rose 39.2% to $36.6 million during the third quarter of 2004, while operating profit jumped 59% to $6.2 million. The company said revenue growth was driven by market share gains and increased demand for aftermarket fasteners, driven by gains in airline passenger traffic.
Overall Q3 sales improved 19% to $183.5 million, while operating profit more than doubled to $17.5 million. The company said those gains included “significant cost reductions resulting from B/E’s consolidation program, which was completed during late 2003. As previously reported, management believes the consolidation program is generating annual cash savings of about $60 million.” Q3 net loss narrowed to $2.7 million, compared with a $9.1 million loss during the third quarter of 2003.
For the first nine months of 2004, B/E reported sales climbed 18% to $543.9 million. The company recorded a nine-month net loss of $12.7 million, compared with a $34 million loss during the first three quarters of 2003.
In early October, the company sold 18.4 million shares of common stock at $9.00 per share, generating $156 million in net proceeds. The company intends to use the proceeds, along with an additional $50 million in cash, to redeem all $200 million of its 9 1/2 percent senior subordinated notes due 2008. Web: beaerospace.com �2004 FastenerNews.com