B/E Aerospace posts first quarter results

B/E Aerospace announced its first quarter 2016 financial results and raised its full year guidance. First quarter 2016 revenues of US$716.7m and operating earnings of US$129.4m increased 4% and 3%, respectively, as compared with the prior year period. Operating margin was 18.1 percent. Net earnings and net earnings per diluted share were US$82.6m representing increases of 6.4% and 9.5%, respectively, as compared with the prior year period.
First quarter 2016 commercial aircraft segment (CAS) revenues of US$557.0m increased 5.9%. The revenue increase was driven primarily by higher volumes of seating products, food and beverage preparation and storage equipment, A350 galleys and B737 lavatories. Operating earnings of US$104.7m increased 6.4% and operating margin of 18.8% increased 10 basis points as compared with the prior year period. First quarter 2016 business jet segment (BJS) revenues of US$159.7m increased at a double-digit rate on a sequential quarterly basis but decreased 2.6% as compared with the same period of the prior year. The year-over-year revenue decline reflects the broad-based downturn in the new business jet and helicopter markets, as well as lower volumes of super first class seating products. Operating earnings were US$24.7m and operating margin of 15.5% decreased 120 basis points as a result of lower revenues and an unfavorable mix of products as compared with the prior year period.