B/E Aerospace Inc.'s (BEAV) fourth-quarter profit slipped 6.3%,
but adjusted results topped estimates as the resurgent airline
industry powered the company's top line.
The maker of aircraft cabin products from fasteners and seats to
cooking equipment has posted rising sales amid a better environment
for its customers. The market for airplanes has shown signs of
improvement of late as a rebound in air travel demand has improved
airlines' prospects.
"The global economy, a key factor in driving global passenger
traffic, continues to recover," Chief Executive Amin Khoury said.
"As a result, the global airlines are experiencing strong growth in
revenues, profitability and liquidity."
The company also adjusted its earnings guidance for the current
year, now projecting $1.95, versus its prior view of $1.90 to
$1.95, while affirming its sales projection.
B/E Aerospace posted a fourth-quarter profit of $31.2 million,
or 31 cents a share, down from $33.3 million, or 33 cents a share,
a year earlier. Excluding acquisition costs, debt prepayment and
other charges, adjusted earnings rose to 47 cents a share from 35
cents a share. Revenue increased 13% to $541.8 million.
Analysts most recently forecast earnings of 40 cents on $526
million in revenue.
Gross margin jumped to 35.9% from 34.4% on improvements in the
company's commercial aircraft and consumables management units.
Adjusted operating earnings at the company's commercial aircraft
unit, its biggest by revenue, rose 43% on an 18% sales increase.
The consumables-management segment, which distributes parts such as
fasteners, saw its profit rise 23% on an 11% increase in revenue,
while its business jet segment earnings dropped 31% as sales edged
up 2%.
Overall backlog, which included contributions from two acquired
businesses, rose 13% from a year earlier to $3.05 billion.
Shares closed Wednesday at $38.47 and were inactive premarket.
The stock has gained 52% over the past year.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com;