Aftermarket Boosts B/E Profit Margin

Cabin interiors supplier B/E Aerospace has confirmed that revenues from aftermarket sales contributed to an increase in its operating earnings and margin during Q1 2015.

Cabin interiors supplier B/E Aerospace has confirmed that revenues from aftermarket sales contributed to an increase in its operating earnings and margin during Q1 2015.

In publishing its first financial results since the spin-off of its consumables management businesses, B/E revealed that Q1 revenues had increased seven per cent year on year to $690m, however, the increase was mainly due to sales in the business jet sector, with revenues from commercial aircraft product increasing just 0.5 per cent.

The firm cited the ongoing geopolitical situation in Russia as having a negative impact on its commercial business sector. Overall operating earnings were up 10 per cent and its operating margin hit 18.2 per cent, as a result of “favourable product mix, including higher aftermarket revenues”.

The firm did, however, revise its revenue guidance for 2015 to the lower end of its previous $2.8bn–$2.9bn target, “reflecting lower than expected revenues from Russia … and negative impact from Euro denominated sales”.

 

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