B/E Aerospace to Take $30 Million after-Tax Charge in Third Quarter Associated with Cost Reduction Initiatives
By Business Wire News
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.
Greg Powell, 561-791-5000
Vice President Investor Relations