5/17/2010
HEADLINES
Stock Report: B/E AEROSPACE
Sales at B/E Aerospace’s fastener business, Consumables Management, dropped 23.5% to $798.1 million on a proforma basis during 2009. The company said the decline “reflects reduced activity at airline and MRO maintenance facilities, reduced aircraft capacity, a decrease in revenue passenger miles flown, and substantially reduced activity at business jet manufacturers.”
Fastener segment operating earnings fell 21% to $170.8 million, excluding AIT costs.
During 2009 consolidated B/E Aerospace sales dipped 21% to $1.94 billion, with earnings down 25% to $296.1 million.
In 2008 B/E Aerospace completed its acquisition of Honeywell’s aerospace fastener distribution business, Honeywell Consumable Solutions, for $1.06 billion.
B/E’s new segment, Consumables Management, provides logistics services OEMs, airlines, repair shops, flight service centers and distributors, as well as distributing aerospace fasteners.
As part of the deal, B/E signed a 30-year contract to become Honeywell’s exclusive licensee to sell fasteners, seals and other products, as well as supplying Honeywell’s production facilities.
With a combination of $903.1 million in cash and six million shares of common stock, B/E paid about twice HCS’ $524 million in revenue – reportedly about double the aerospace and defense sector’s price-to-sales ratio of 1.1 to 1.
Consumables Management operates a 355,760 sq ft distribution facility in Miami; a 67,000 sq ft facility in Stratford, CT; a 36,000 sq ft facility in Paramus, NJ; and a 49,000 sq ft facility in Wichita, KS. Consumables Management offers 275,000 parts in 40 locations worldwide.
Corporate Office: 1400 Corporate Center Way, Wellington, FL 33414. Tel: 561 791-5000 Fax 561 791-7900
Web: beaerospace.com
CEO: Amin Khoury, 70
Key Fastener Executive: Robert Marchetti, 67, general manager of Consumables Management
Employees: 5,500
©2010 GlobalFastenerNews.com
Related Stories:
Share: