8/25/2015 12:34:00 AM
NEWS BRIEFS
KLX Reports Record Aerospace Fastener Revenue
KLX Inc. reported consolidated sales – primarily from fasteners – declined 4.2% to $412.7 million in the second quarter of 2015, with operating earnings of $46.9 million and adjusted EBITDA of $72.1 million.
Second-quarter sales in the company’s Aerospace Solutions Group (ASG) increased 5.7% to a record $351.7 million, driven by increased activity among commercial aerospace manufacturing customers. ASG operating earnings gained 3.4% to $66.1 million during the quarter, while adjusted EBITDA rose 6.9% to $76.2 million.
“ASG experienced strong growth from its commercial aerospace customers, somewhat offset by a decline in demand from the business jet and military portion of our business,” stated CEO Amin Khoury.
“Revenue growth from our global aerospace manufacturing customers continued to outpace aftermarket revenues, which on a constant currency basis, increased 1.5% as compared with the prior year period, reflecting the record number of retirements of aging aircraft.”
Revenue from its Energy Services Group fell 32.5% to $61 million, “negatively impacted by the precipitous decline in the North American onshore oil and gas services industry,” Khoury explained.
Consolidated revenue at KLX – the former Consumables Management segment of B/E Aerospace – during the first six months of 2015 grew 7.3% to $844.2 million, with operating earnings dropping 31% to $102.8 million.
First-half aerospace segment revenue gained 4.9% to $699.7 million, with operating earnings up 3.8% to $132.4 million.
Six-month ESG segment revenue gained 7.1% to $144.5 million, with operating earnings dropping to a negative $29.6 million, hit by expansion costs.
“During the first half of 2015, we substantially broadened ESG’s range of services, and expanded our service offerings into the Casper, Riverton and Rock Springs, Wyoming markets and the Enid, Oklahoma and Bossier City, Louisiana markets,” Khoury noted.
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Related Links:
• KLX Inc.
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