B/E Aerospace Wins Exclusive Boeing Award
January 17 2012 - 2:00AM
Business Wire
B/E Aerospace (Nasdaq:BEAV), the world's leading manufacturer of
aircraft cabin interior products and the world's leading
distributor of aerospace fasteners and consumables, today announced
that The Boeing Company has selected B/E Aerospace to become the
exclusive manufacturer of modular lavatory systems for Boeing’s 737
Next-Generation family of airplanes, as well as the 737 MAX which
is expected to be introduced into service later this decade. The
estimated value of the award is in excess of $800 million,
exclusive of retrofit orders, which are expected to be
substantial.
The B/E Aerospace modular lavatory system (MLS) utilizes B/E
Aerospace, patent pending, Spacewall® technology, which frees up
floor space in the cabin, creating the opportunity to add up to six
incremental passenger seats on each airplane.
The B/E Aerospace MLS will integrate the B/E Aerospace
technologically advanced Aircraft Ecosystems® vacuum toilet,
long-life B/E Aerospace LED lighting and B/E Aerospace tamper
proof, state-of-the-art lavatory oxygen system. B/E Aerospace
Aircraft Ecosystem® vacuum toilets have 25 percent greater
reliability than existing systems and components can be replaced in
a few minutes, as compared to up to an hour for existing
systems.
“We are very pleased to have been selected by Boeing to become
the sole-source supplier of lavatory systems for the Boeing 737
aircraft, the world’s best selling jet airplanes, and we look
forward to continuing our long-standing relationship with Boeing to
develop systems to enhance aircraft performance and passenger
comfort. The B/E Aerospace advanced modular lavatory system
utilizes proprietary technologies that increase cabin floor space
resulting in increased aircraft passenger placements, as well as
improved reliability and simplified and speedier maintenance,
resulting in increased aircraft flight hour availability. Our
lavatories are designed to increase airline revenue and yields
while substantially improving the lavatory environment," commented
Amin J. Khoury, Chairman and Chief Executive Officer of B/E
Aerospace.
“We expect to begin lavatory system deliveries for Delta
Airlines’ new-buy 737s in the third quarter of 2013, and to ramp-up
deliveries thereafter in an orderly fashion. We intend to
substantially accelerate our investments in our modular lavatory
program and on the related waste water system programs in order to
be in a position to produce significant quantities of lavatory
systems by the end of 2012. In addition, the Company is also
stepping up its capital spending to support certain other SFE
programs. As a result of increased capital spending for plant,
machinery, equipment, and tooling, as well as inventory build to
support these programs, the Company is adjusting its free cash flow
conversion ratio guidance for 2012 to approximately 80 to 85
percent of net earnings.”
“This award is part of our strategic focus to substantially
increase our revenue content per aircraft through creative,
sole-source product offerings. With this award the value of SFE
awards, which the Company has won, totals approximately $4.3
billion. Our current record backlog of approximately $3.45 billion,
along with unbooked SFE awards, totals approximately $7.7 billion,
also a record. We expect our SFE program awards to be generating up
to approximately $400 million per year in revenues, exclusive of
737 lavatory retrofit programs, beginning in 2015. These programs
provide us with excellent visibility with respect to future revenue
growth,” continued Mr. Khoury.
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements involve risks and uncertainties.
The Company’s actual experience and results may differ materially
from the experience and results anticipated in such statements.
Factors that might cause such a difference include those discussed
in the Company’s filings with the Securities and Exchange
Commission, which include its Proxy Statement, Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K. For more information, see the section entitled
"Forward-Looking Statements" contained in the Company’s Annual
Report on Form 10-K and in other filings. The forward-looking
statements included in this news release are made only as of the
date of this news release and, except as required by federal
securities laws, the Company does not intend to publicly update or
revise any forward-looking statements to reflect subsequent events
or circumstances.
About B/E Aerospace
B/E Aerospace is the world’s leading manufacturer of aircraft
cabin interior products and the world’s leading distributor of
aerospace fasteners and consumables. B/E Aerospace designs,
develops and manufactures a broad range of products for both
commercial aircraft and business jets. B/E Aerospace manufactured
products include aircraft cabin seating, lighting, oxygen, and food
and beverage preparation and storage equipment. The Company also
provides cabin interior design, reconfiguration and
passenger-to-freighter conversion services. Products for the
existing aircraft fleet – the aftermarket – generate approximately
50 percent of sales. B/E Aerospace sells and supports its products
through its own global direct sales and product support
organization.
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