WELLINGTON, Fla.--(BUSINESS WIRE)--Sep. 16, 2015--
B/E Aerospace, Inc. (the “Company”) (NASDAQ:BEAV), the world’s leading
manufacturer of aircraft cabin interior products, today announced that
it expects to recognize charges during the third quarter associated with
its cost reduction program. The charges reflect costs associated with
facilities consolidation, product rationalization, workforce reductions
and program discontinuance. The Company plans to close several
facilities, consolidate certain product lines and reduce headcount by
approximately 450 employees. Total after-tax charges for the associated
activities are expected to be approximately $30 million.
"These initiatives are expected to reduce costs and improve efficiencies
which are necessary due to the slower revenue growth expected in 2015
and 2016. We expect our initiatives to offset inflationary pressures on
wages, occupancy and infrastructure costs and enable us to continue to
generate incremental year-over-year margin improvement,” said Amin J.
Khoury, Executive Chairman of B/E Aerospace.
Commenting on the Company’s outlook, Mr. Khoury stated, “We are
confirming herein that we continue to expect 2015 revenues and net
earnings per diluted share to be approximately $2.8 billion and
approximately $3.03 per share respectively, exclusive of the charges
associated with the aforementioned initiatives. In addition, as we
previously reported, we expect to provide detailed 2016 financial
guidance on October 27, 2015. We continue to expect 2016 revenues to be
one to two percent higher as compared with 2015 followed by a strong
acceleration in the 2017 revenue growth rate consistent with the
scheduled deliveries from the Company’s record backlog.”
This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements involve risks and uncertainties. The
Company’s actual experience and results may differ materially from the
experience and results anticipated in such statements. Factors that
might cause such a difference include those discussed in the Company’s
filings with the Securities and Exchange Commission (“SEC”), which
include its Proxy Statement, Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. The declaration
and payment of future dividends, share repurchases, and repayment of
outstanding debt are at the discretion of the Board of Directors and
will depend on the Company’s future earnings, capital requirements,
financial conditions, operating conditions, contractual restrictions and
such other factors as the Board of Directors may deem relevant. For more
information, see the section entitled “Cautionary Statement Regarding
Forward-Looking Statements” contained in the Company’s Annual Report on
Form 10-K and in other filings. The forward-looking statements included
in this news release are made only as of the date of this news release
and, except as required by federal securities laws and rules and
regulations of the SEC, the Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
About B/E Aerospace, Inc.
B/E Aerospace is the world’s leading manufacturer of aircraft cabin
interior products. B/E Aerospace designs, develops and manufactures a
broad range of products for both commercial aircraft and business jets.
B/E Aerospace manufactured products include aircraft cabin seating,
lighting systems, oxygen systems, food and beverage preparation and
storage equipment, galley systems, and modular lavatory systems. B/E
Aerospace also provides cabin interior reconfiguration, program
management and certification services. B/E Aerospace sells and supports
its products through its own global direct sales and product support
organization. For more information, visit the B/E Aerospace website at www.beaerospace.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150916005234/en/
Source: B/E Aerospace, Inc.
Greg Powell, 561-791-5000