2/1/2012 12:35:00 AM
NEWS BRIEFS
Despite Growth, Fastener Acquisitions A ‘Margin Drag’ for B/E Aerospace
B/E Aerospace reported Consumables management (CMS) revenue, including fasteners rose 22.1% to $943.5 million in 2011, with segment operating earnings climbing 19.5% to $183.1 million during the year.
Those results included a 16.7% increase in Consumables revenue to $234.1 during the final quarter of 2011. Q4 segment operating earnings gained 13% to $42.6 million.
CMS adjusted operating earnings were $187.6 million (19.9 percent operating margin), an increase of 19% as compared with 2010. Adjusted organic operating margin, excluding acquisitions, was approximately 20.8%, up 30 basis points. Organic revenue growth, excluding acquisitions, reached 9.3% and excluding both acquisitions and sales to military and business jet customers, revenue growth was approximately 14.6%.
Despite record results, CEO Amin Khoury pointed to the “margin drag from the consumables management segment acquisitions which we have now begun to integrate.”
In recent months the company’s Consumables segment has made several acquisitions, including the $400 million deal to purchase UFC Aerospace Corp. that was completed on January 30, 2012.
Fourth quarter 2011 consumables management segment (CMS) adjusted operating margin was 20.1%, reflecting “the acquisitions of Satair and LaSalle, which have lower operating margins than the legacy CMS business.”
Adjusted organic operating margin for the fourth quarter of 2011 was approximately 20.8%. ©2012 GlobalFastenerNews.com
B/E Aerospace reported Consumables management (CMS) revenue, including fasteners rose 22.1% to $943.5 million in 2011, with segment operating earnings climbing 19.5% to $183.1 million during the year.
Those results included a 16.7% increase in Consumables revenue to $234.1 during the final quarter of 2011. Q4 segment operating earnings gained 13% to $42.6 million.
CMS adjusted operating earnings were $187.6 million (19.9 percent operating margin), an increase of 19% as compared with 2010. Adjusted organic operating margin, excluding acquisitions, was approximately 20.8%, up 30 basis points. Organic revenue growth, excluding acquisitions, reached 9.3% and excluding both acquisitions and sales to military and business jet customers, revenue growth was approximately 14.6%.
Despite record results, CEO Amin Khoury pointed to the “margin drag from the consumables management segment acquisitions which we have now begun to integrate.”
In recent months the company’s Consumables segment has made several acquisitions, including the $400 million deal to purchase UFC Aerospace Corp. that was completed on January 30, 2012.
Fourth quarter 2011 consumables management segment (CMS) adjusted operating margin was 20.1%, reflecting “the acquisitions of Satair and LaSalle, which have lower operating margins than the legacy CMS business.”
Adjusted organic operating margin for the fourth quarter of 2011 was approximately 20.8%. ©2012 GlobalFastenerNews.com
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