B/E Aerospace Announces $125 Million in New Program Awards; Strong Orders Drive Record Backlog
posted on
Jan 05, 2005 11:57AM
WELLINGTON, Fla.--(BUSINESS WIRE)--Jan. 5, 2005--B/E Aerospace, Inc. (Nasdaq:BEAV), the world`s leading manufacturer of aircraft cabin interior products and a leading aftermarket distributor of aerospace fasteners, today announced that two airlines have selected B/E to provide premium class cabin interior products, including premium class seating in one case and super first class cabin interiors in the second. The total value of the program awards announced today will likely exceed $125 million with initial firm orders valued at approximately $90 million.
B/E has been selected by a major international airline to design, manufacture, deliver and certify a version of its award-winning MiniPod(TM) lie-flat premium class seating for its large fleet of aircraft. This major premium class seating award demonstrates the continuing strong demand for B/E`s MiniPod product line, which is driving solid market share gains and backlog growth. Winner of the coveted Chicago Athenaeum Good Design Award, the MiniPod product line is B/E`s newest generation of lie-flat seating and offers many unique amenities and features for the business traveler, such as the ability to fully recline and transform into a comfortable bed. To date, 11 airlines have now selected versions of the B/E Aerospace MiniPod as their choice for premium class seating. Initial product deliveries pursuant to this award are expected to begin in mid-2006.
In a second order announced today, B/E has been selected by a domestic airline to design, manufacture and deliver luxurious super first class cabin interiors for up to ten of the airline`s long haul aircraft. This marks the fifth super first class program award for B/E since July 2004. Previously announced super first class program awards include Thai Airways, Malaysia Airlines, Emirates Airline and Qantas Airways.
B/E`s super first class interiors program draws upon several resources within the company`s Business Jet segment and Flight Structures unit (FSI), and integrates the highest level of design, engineering and manufacturing capabilities to develop and certify luxurious, highly stylized premium cabin interiors, including accommodations such as custom cabinetry with finely crafted wood finishes, custom leather seating with comfortable lie-flat features and electronic controls that adjust for multiple positions, a large flat panel personal entertainment system, personal beverage dispensers, LED mood lighting and other accents that highlight the pinnacle of premium class commercial air travel. Product deliveries under the order announced today are expected to begin in 2006.
Commenting on the orders announced today, Robert Khoury, B/E`s President and CEO said, ``We are seeing strong demand for our leading-edge premium class products, which continues to be driven by the financially healthy Asia-Pacific and Middle Eastern airlines. As a result, the company has built a record backlog of over $700 million, up approximately 40 percent versus the prior year. Both the size and quality of our backlog has improved, and we have made significant market share gains.`` Mr. Khoury further stated, ``Our investment in new product development over the past several years continues to yield market success. Over the past twelve months, B/E has significantly increased its market shares in premium class seating as eleven airlines have now selected versions of our MiniPod seating product and a fifth airline has now selected our super first class products. We expect to continue strengthening our market shares with additional orders and backlog growth during 2005, further improving our competitive positioning and financial outlook for 2006 and 2007, as our strong backlog drives accelerating revenue growth.``
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties. B/E`s actual experience may differ materially from that anticipated in such statements. Factors that might cause such a difference include those discussed in B/E`s filings with the Securities and Exchange Commission, including but not limited to its most recent proxy statement, Form 10-K and Form 10-Q. For more information, see the section entitled ``Forward-Looking Statements`` contained in B/E`s Form 10-K and in other filings.
About B/E Aerospace, Inc.
B/E Aerospace, Inc. is the world`s leading manufacturer of aircraft cabin interior products, and a leading aftermarket distributor of aerospace fasteners. B/E designs, develops and manufactures a broad product line for both commercial aircraft and business jets and provides cabin interior design, reconfiguration and passenger-to-freighter conversion services. Products for the existing aircraft fleet -- the aftermarket -- provide about 60 percent of sales. B/E sells its products through its own global direct sales organization. For more information, visit B/E`s website at http://www.beaerospace.com.