April 23, 2015
B/E Aerospace reports first quarter 2015 financial results
B/E Aerospace reported first quarter 2015 revenues of US$690m an increase of 7.0% as compared with the prior year period (revenues increased 7.7 percent adjusting for the impact of Euro denominated sales). In addition, revenues from the Company’s Russian customers were severely impacted by geopolitical and macroeconomic forces, and demand from defense customers was also weak. Excluding sales to Russian and defense related end markets and adjusting for negative impact from currency, revenues increased 10.1%. Operating earnings of US$125.7m increased 10.1%, and operating margin of 18.2% expanded 50 basis points. On a GAAP basis, operating earnings increased 14.2%. First quarter 2015 net earnings and net earnings per diluted share were US$77.6m, representing increases of 21.3%, as compared with the prior year period. On a GAAP basis, net earnings and earnings per diluted share increased 22.8% and 21.3%, respectively.
First quarter 2015 commercial aircraft segment (“CAS”) revenues of US$526.1mn were negatively impacted by a significant decline in sales to Russian and defense end markets. Exclusive of the aforementioned factors and adjusted for negative impact from currency, CAS revenues increased 2.9%. Operating earnings of US$98.4m increased 5.7%, and operating margin of 18.7% increased 90 basis points as a result of favorable product mix including higher aftermarket revenues.
First quarter 2015 business jet segment (“BJS”) revenues of US$163.9m increased 35.2%. Revenue growth was driven by higher sales of super first class products and acquisitions. BJS revenues excluding the impact of acquisitions increased 8.9%. Operating earnings increased 29.4% to US$27.3m, and operating margin of 16.7% reflects increased investment in developing additional new, highly innovative, bespoke product offerings.