B/E Aerospace is seeing an increase in requests for proposals (RFPs) to provide interiors for commercial carriers' on-order and existing aircraft, and says it expects to achieve "significant" earnings growth beginning in 2011.
"We are continuing to see an uptick in RFPs and we are in active discussions with several airlines that are planning to make fleet-wide decisions for their new-buy Boeing 787s, Airbus A380s, Boeing 747-8s, Boeing 777s and Airbus A350 aircrafts and to retrofit their existing fleets," says B/E executive chairman and CEO Amin Khoury.
"Given our product and market leadership position, we are optimistic about these opportunities and are hopeful that we will be able to share more good news with you as decisions are reached on these important programmes throughout 2010."
Khoury's comments mirror those made by other interiors specialists in recent weeks, including Zodiac and in-seat power supplier Astronics, which are seeing a rise in new business on the heels of increases in production at Airbus and Boeing and a rebound in the retrofit market.
B/E reported a first quarter net profit of $34 million on an 11.5% year-over-year drop in revenues to $464 million. Operating earnings of $72 million declined 11% as compared with the first quarter of 2009.
The firm's backlog at the end of the quarter was approximately $2.7 billion, an increase of 2% as compared with the company's 31 December 2009 backlog.
"The increase in orders was highlighted by the recently announced awards from nine airlines and leasing companies for our new patented Pinnacle main cabin seating platform, the industry's lightest full-featured seat," says Khoury. "These launch awards are initially valued in excess of $250 million and are for economy class programmes and new-buy Boeing 737, Airbus A320 and Boeing 787 aircraft."
Importantly, he says, B/E experienced "a substantial increase" in commercial aircraft segment spares bookings and sales in the first quarter versus the first quarter of the prior year, "and a similarly strong increase in consumables bookings versus the fourth quarter of 2009".
As a result of improving global air traffic and airline yields, and "better-than-expected performance" by the company during the first quarter, B/E is raising its 2010 full-year earnings per share guidance by $0.05 to approximately $1.45 per diluted share.
Revenues for the year are expected to be approximately 2% lower than 2009 revenues of approximately $1.94 billion, reflecting a lower level of business jet deliveries in 2010.
However, based on expectations of an expansion in orders and backlog, and a recovery in B/E's commercial aircraft segments spares and consumables businesses during 2010, the firm expects a significant increase in revenues, earnings and cash flows beginning in 2011.
Source: Air Transport Intelligence news
