RE: B/E Aerospace...Whata lost opportunity?..
posted on
Feb 03, 2006 09:53AM
A British Airways $150 million+ fleet-wide business class retrofit program covering all long-haul aircraft
A $155 million retrofit program for a major international airline covering both wide-body premium and premium coach cabins, and program integration services
A $100 million super first class program for Emirates Airlines for their A380 and B777 aircraft
A Qantas Airways $90 million retrofit covering B747 business class plus first class and business class on A380 aircraft
There were also a number of additional significant programs for Air France, Lufthansa, Japan Airlines, and Korean Airlines, all among the largest airlines in the world.
``We are particularly encouraged by the continued strong RFQ activity and ongoing discussions with our customers. Virtually every major international airline is either in the process of upgrading the premium class compartments of their international fleets of twin-aisle aircraft or are in discussions to do so. The upgrade discussions include reconfiguration and integration engineering programs, premium class seating, food and beverage preparation and storage equipment and mood lighting products. Additionally, the international airlines are now beginning to address not only their coach compartment retrofit needs but also their premium class and coach class requirements for their new buy wide-body aircraft. Cabin interiors for wide-body aircraft require five to eight times the dollar value of the cabin interior equipment used to outfit narrow-body aircraft. Industry experts anticipate that Boeing and Airbus will ship approximately 950 wide-body and super wide-body aircraft over the four year period from 2007 through 2010. The scheduled deliveries of these wide-body aircraft coupled with the strong demand for aftermarket retrofit programs and the continued recovery in the business jet sector bode well for continued strong revenue growth for at least the next three years,`` concluded Mr. Khoury.
FINANCIAL GUIDANCE
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Financial guidance is now as follows:
For 2006, management expects organic revenue growth of approximately 20% to about $1 billion, operating earnings growth of approximately 40% driven by the higher level of sales and an approximate 200 basis point expansion in operating margin, and EPS of approximately $1.12 per diluted share, with first quarter EPS of approximately $0.15 (including debt extinguishment costs of $1.8 million).
For 2007, revenues are expected to grow at a double digit rate, and operating earnings are expected to grow by approximately 35 percent driven by strong revenue growth and a further significant expansion in operating margin.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties. B/E`s actual experience may differ materially from that anticipated in such statements. Factors that might cause such a difference include those discussed in B/E`s filings with the Securities and Exchange Commission, including but not limited to its most recent proxy statement, Form 10-K and Form 10-Q. For more information, see the section entitled ``Forward-Looking Statements`` contained in B/E`s 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, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.