B/E Aerospace Inc. said Tuesday it posted a higher second-quarter net income as the manufacturer of airline interior components benefited from a 2 percent bump in sales and improved margins in its consumables management and commercial aircraft segments.
Management said it expects to see a significant increase in revenue, earnings and cash flow beginning next year, as well as higher levels of wide-body aircraft deliveries.
The company said net income rose to $37.3 million, or 37 cents a share, in the three months ended in June. That compares with net income of $34.7 million, or 35 cents a share, in the same quarter last year.
Excluding one-time items, adjusted earnings for the quarter amounted to $39 million, or 39 cents a share, the company said.
Revenue increased to $483.9 million from $474.8 million, fueled primarily by commercial aircraft segment sales.
Analysts surveyed by Thomson Reuters were expecting B/E Aerospace to post earnings of 37 cents a share on revenue of $476.6 million. The estimates generally exclude one-time items.
Operating margin of 16.3 percent expanded 70 basis points from last year.
Amin Khoury, B/E Aerospace's chairman and chief executive, said the company expects stronger operating results the rest of this year and beyond, in part due to the anticipation of a continued increase in global passenger traffic.
The company raised its full-year earnings-per-share estimate by 5 cents per share to about $1.50 per share, exclusive of a non-cash debt prepayment charge. Analysts expect $1.52 per share, on average.
Management also projects full-year revenue will be about equal to last year's revenue of about $1.94 billion. That estimate is in line with what analysts are expecting, according to Thomson.
B/E Aerospace shares fell 90 cents to $29.39 in afternoon trading.