B/E Aerospace First Quarter Results Exceed Expectations; 2010 Full Year Guidance Increased
finance.yahoo.com
April 27, 2010, 2:00 am EDT
FIRST QUARTER 2010 HIGHLIGHTS
* First quarter 2010 revenues of $463.5 million declined 11.5 percent as compared with the first quarter of 2009.
* First quarter 2010 operating earnings of $72.0 million declined 10.8 percent as compared with the first quarter of 2009. Operating margin of 15.5 percent expanded 10 basis points.
* First quarter 2010 net earnings were $33.8 million or $0.34 per diluted share.
* First quarter 2010 free cash flow of $38.2 million represented a free cash flow conversion rate of 113.0 percent.
* First quarter 2010 book-to-bill ratio was in excess of one for the second consecutive quarter. Bookings for both consumables and commercial aircraft segment spares improved substantially.
* Full-year 2010 earnings per share guidance is raised by $0.05 per diluted share to approximately $1.45 per diluted share.
* The company expects positive year-over-year quarterly earnings comparisons beginning in the second quarter of 2010.
Commenting on the company’s outlook, Mr. Khoury stated, “As a result of improving global air traffic and airline yields, and better than expected performance during the first quarter of 2010, we are raising our 2010 full year earnings per share guidance by $0.05 per diluted share to approximately $1.45 per diluted share. Second quarter 2010 earnings per diluted share are expected to be approximately $0.36. In addition, we expect to generate free cash flow in excess of 100 percent of net earnings for the full year 2010, with the second quarter free cash flow conversion rate lower than that of the first quarter of 2010. Our expectation for a higher level of demand for commercial aircraft segment spares and consumables should contribute toward favorable year-over-year quarterly operating earnings comparisons at the commercial aircraft and consumables management segments beginning in the second quarter of 2010. Importantly, based upon our expectation of an expansion in orders and backlog and a recovery in our commercial aircraft segment spares and consumables businesses during 2010, we expect a significant increase in revenues, earnings and cash flows beginning in 2011.”
The company’s financial guidance for 2010 is as follows:
* The company expects an expansion in orders and backlog in 2010 due to improving demand for consumables and commercial aircraft segment spares, the conversion of a portion of unbooked supplier furnished equipment awards to bookings, and an expected increase in orders for cabin interior products arising from the recent increase in RFQ activity related thereto.
* 2010 revenues are expected to be approximately 2 percent lower than 2009 revenues of approximately $1.94 billion, reflecting a lower level of commercial aircraft and business jet deliveries in 2010 and the weak bookings that the company experienced in 2009, offset somewhat by higher aftermarket revenues.
* The company expects favorable quarterly earnings comparisons to 2009 beginning in the second quarter of 2010. Second quarter 2010 earnings per diluted share are expected to be approximately $0.36.
* 2010 earnings per diluted share are expected to be approximately $1.45 per diluted share; an increase of $0.05 per diluted share from the company’s earlier guidance, based on improving global air traffic and airline yields, and better than expected performance during the first quarter of 2010.
* 2010 free cash flow is expected to be in excess of $145 million reflecting a free cash flow conversion rate in excess of 100 percent for the full year.
* Due to the expected expansion in orders and backlog in 2010 and a recovery in the commercial aircraft segment spares and consumables businesses, the company expects a significant increase in revenues, earnings and cash flows beginning in 2011. |
