BEAV news
posted on
Apr 24, 2006 06:47AM
Recent Program Wins and Record Backlog Bolster Outlook
The company generated record bookings and backlog during the first quarter of 2006 driven primarily by aftermarket premium class retrofit awards, including:
United Airlines selected the company to retrofit its entire wide-body fleet with premium class products in a program initially valued at approximately $165 million. This retrofit program, the industry`s largest to date, has now been upgraded to $215 million and will begin to deliver in 2007.
The company was awarded over $190 million of follow-on orders from existing customers for a variety of seating products, a broad array of food and beverage preparation and storage equipment, and engineering and integration programs.
Bookings for the quarter of approximately $500 million, which increased by over $200 million versus the same quarter in the prior year, drove the company`s backlog to a record $1.3 billion, representing an increase of over 70 percent as compared to the March 31, 2005 backlog.
``Bookings for the quarter set another record for the company. The United Airlines premium class retrofit award was particularly gratifying due to both its size, the industry`s largest, and the scope of the project. Equally important were the numerous follow-on orders we received during the quarter from existing customers to retrofit the premium classes of their aircraft. We expect these program awards to continue to expand our market shares as these programs begin to deliver, as our customers begin to take delivery of larger numbers of new aircraft, and as they expand their existing retrofit programs to address their coach class cabins,`` said Amin J. Khoury, Chairman and Chief Executive Officer of B/E Aerospace.
Commenting on the strength of the market, Mr. Khoury continued, ``As we`ve mentioned before, we are particularly encouraged by the continued strong RFQ activity and ongoing discussions with our customers. The airline activity level at the recent Hamburg aircraft interiors show reinforced the strong interest by the airlines to invest in cabin interior upgrades. 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 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 premium class requirements for their new buy wide-body aircraft.``
``As a result of our significantly improved financial results, we are raising our financial guidance for 2006 to approximately $1.17 per diluted share, up from $1.12 per diluted share previously announced. In addition, our stronger than expected bookings, our record backlog level, robust industry conditions and the high level of customer interest have bolstered our confidence and significantly increased our visibility into 2007 and 2008,`` concluded Mr. Khoury.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act