BE Aerospace Inc. (BEAV, Financial) filed Quarterly Report for the period ended 2009-06-30.
B/E Aerospace Inc. is the world\'s leading manufacturer of aircraft cabin interior products serving virtually all the world\'s airlines and aircraft manufacturers. B/E designs develops manufactures sells and services a broad line of passenger cabin interior products for both commercial and business/VIP aircraft and provides interior design reconfiguration and conversion services to its customers throughout the world. BE Aerospace Inc. has a market cap of $1.73 billion; its shares were traded at around $17.14 with a P/E ratio of 8.9 and P/S ratio of 0.8. BE Aerospace Inc. had an annual average earning growth of 38.4% over the past 5 years.
Net sales for the second quarter of $474.8 decreased by $47.4, or 9.1%, as compared with the second quarter of the prior year. The $47.4 decrease in net sales was the result of the $73.0, or 59.1%, increase in net sales at the consumables management segment (formerly our distribution segment) due to the HCS acquisition, offset by a $102.3, or 31.4% decrease in net sales at the commercial aircraft segment and a $18.1, or 25.0% decrease in net sales at the business jet segment. Proforma net sales (including the HCS acquisition in both periods) declined 30.1% as compared with the second quarter of 2008.
Cost of sales for the current period were $309.5, or 65.2% of net sales, as compared to $342.4, or 65.6% of net sales, in the second quarter of the prior year. The 40 basis point decrease in cost of sales was due to successful cost reduction activities and manufacturing efficiencies, more efficient consumables management purchasing in the current period and initial synergies arising from the HCS acquisition offset by the acquisition of HCS in July 2008 which was less profitable than our legacy consumables management segment.
Selling, general and administrative (SG&A) expenses for the second quarter of 2009 were $68.1, or 14.3% of sales, as compared to $61.7, or 11.8% of sales, in the same period in 2008. SG&A expenses increased by $6.4, or 10.4%, due to $2.9 of acquisition, integration and transition costs associated with the HCS acquisition (AIT costs) and $4.8 of unfavorable foreign exchange expenses mainly due to the weakening of the U.S. dollar versus the British pound, partially offset by the Company s cost reduction initiatives including an 20% reduction in headcount as compared to our 2008 proforma headcount.
Operating earnings for the second quarter of 2009 of $73.9 decreased $10.4, or 12.3% as compared to the same period in 2008, reflecting the $47.4 decrease in net sales, a 40 basis point reduction in cost of sales as a percentage of net sales, $6.0 of AIT costs and $4.8 of foreign exhcange losses. Including HCS in both periods, second quarter 2009 operating earnings decreased 30.8% as compared with second quarter 2008 proforma operating earnings of $106.8, reflecting the 30.1% year over year decrease in proforma revenues, $6.0 of AIT costs and $4.8 of foreign exchange losses in the current three month period.
Earnings before income taxes for the three months ended June 30, 2009 of $51.4 decreased by $30.6, or 37.3%, as compared to the sam
Read the The complete ReportBEAV is in the portfolios of Arnold Schneider of Schneider Capital Management, Richard Aster Jr of Meridian Fund.
B/E Aerospace Inc. is the world\'s leading manufacturer of aircraft cabin interior products serving virtually all the world\'s airlines and aircraft manufacturers. B/E designs develops manufactures sells and services a broad line of passenger cabin interior products for both commercial and business/VIP aircraft and provides interior design reconfiguration and conversion services to its customers throughout the world. BE Aerospace Inc. has a market cap of $1.73 billion; its shares were traded at around $17.14 with a P/E ratio of 8.9 and P/S ratio of 0.8. BE Aerospace Inc. had an annual average earning growth of 38.4% over the past 5 years.
Highlight of Business Operations:
We also believe in providing our businesses with the tools required to remain competitive. In that regard, we have invested, and intend to continue to invest, in property and equipment that enhances our productivity. Over the past three years, annual capital expenditures ranged from $24 - $32. Taking into consideration our backlog, targeted capacity utilization levels, recent capital expenditure investments and current industry conditions, we anticipate capital expenditures of approximately $40 over the next twelve months.Net sales for the second quarter of $474.8 decreased by $47.4, or 9.1%, as compared with the second quarter of the prior year. The $47.4 decrease in net sales was the result of the $73.0, or 59.1%, increase in net sales at the consumables management segment (formerly our distribution segment) due to the HCS acquisition, offset by a $102.3, or 31.4% decrease in net sales at the commercial aircraft segment and a $18.1, or 25.0% decrease in net sales at the business jet segment. Proforma net sales (including the HCS acquisition in both periods) declined 30.1% as compared with the second quarter of 2008.
Cost of sales for the current period were $309.5, or 65.2% of net sales, as compared to $342.4, or 65.6% of net sales, in the second quarter of the prior year. The 40 basis point decrease in cost of sales was due to successful cost reduction activities and manufacturing efficiencies, more efficient consumables management purchasing in the current period and initial synergies arising from the HCS acquisition offset by the acquisition of HCS in July 2008 which was less profitable than our legacy consumables management segment.
Selling, general and administrative (SG&A) expenses for the second quarter of 2009 were $68.1, or 14.3% of sales, as compared to $61.7, or 11.8% of sales, in the same period in 2008. SG&A expenses increased by $6.4, or 10.4%, due to $2.9 of acquisition, integration and transition costs associated with the HCS acquisition (AIT costs) and $4.8 of unfavorable foreign exchange expenses mainly due to the weakening of the U.S. dollar versus the British pound, partially offset by the Company s cost reduction initiatives including an 20% reduction in headcount as compared to our 2008 proforma headcount.
Operating earnings for the second quarter of 2009 of $73.9 decreased $10.4, or 12.3% as compared to the same period in 2008, reflecting the $47.4 decrease in net sales, a 40 basis point reduction in cost of sales as a percentage of net sales, $6.0 of AIT costs and $4.8 of foreign exhcange losses. Including HCS in both periods, second quarter 2009 operating earnings decreased 30.8% as compared with second quarter 2008 proforma operating earnings of $106.8, reflecting the 30.1% year over year decrease in proforma revenues, $6.0 of AIT costs and $4.8 of foreign exchange losses in the current three month period.
Earnings before income taxes for the three months ended June 30, 2009 of $51.4 decreased by $30.6, or 37.3%, as compared to the sam
Read the The complete ReportBEAV is in the portfolios of Arnold Schneider of Schneider Capital Management, Richard Aster Jr of Meridian Fund.
