Jason Sandefur

B/E Aerospace profit soared in 2005 after two years of heavy losses, with net earnings increasing to $84.6 million compared with a $22 million loss in 2004. Overall revenue grew 15% to $844.1 million, buoyed by increased volumes to an expanding global aerospace market. About 750 aircraft were delivered in 2005, a 27% increase from the previous year. And industry insiders predict deliveries of 790 additional aircraft in 2006, a 53% increase over the 500 jets delivered in 2003.
Sales to U.S. companies accounted for 47.3% of overall revenue, while Europe contributed 24% and sales to Asia gained 36% to $195 million roughly 23.1% of consolidated revenue.
B/E fastener distribution sales rose 20.6% to $173.9 million in 2005, while earnings grew 34.7% to $34.9 million.
B/E distribution offers 140,000 SKUs, with about 60% of its fasteners sales consumed by the MRO market. The division markets its aerospace fasteners directly to the airlines, completion centers, general aviation airframe manufacturers, airframe manufacturers, first-tier suppliers to airframe manufacturers and other distributors.
B/E Distribution operates a primary 210,000 sq ft distribution facility in Miami, FL. The division lists its fastener competitors as Honeywell Hardware Products Group, Wesco Aircraft Hardware, C.J. Fox and Anixter Pentacon.
Since 1989 B/E has acquired 26 companies for an aggregate purchase price of $1 billion. About 84% of revenues are from sales to airlines, making B/E dependent on the health of the global airline industry.
In December 2005 B/E Aerospace co-founder and CEO Robert Khoury retired and was replaced by his older brother, Amin Khoury.
Corporate Office: 1400 Corporate Center Way, Wellington, FL 33414. Tel: 561 791-5000 Fax 561 791-7900
Web: beaerospace.com
NASDAQ Symbol: BEAV
CEO: Amin Khoury, 66
Investor Relations: Thomas McCaffrey, 51
Key Fastener Executive: Robert Marchetti, Group Vice President & GM of Fastener Distribution Group
Founded: 1987
Employees: 3,980
Percentage of revenue from fasteners: 20.6% \ �2006 FastenerNews.com