Global Fastener News

Fastener Sales Bolster B/E Aerospace Results

Jason Sandefur

Increased market share helped the fastener distribution segment of B/E Aerospace Inc. post a 5% gain in sales to $25.9 million during the fourth quarter of 2003. Q4 operating earnings for fasteners edged up 2.3% to $4.3 million. During the fourth quarter, the company established a new fastener distribution facility in Wichita, KS, to act as sole fastener supplier for Cessna business jets.

B/E Aerospace reported overall Q4 sales climbed 8% to $163.4 million, while earnings were a loss of $19.5 million.
�While our commercial aircraft and fastener distribution segments reported solid improvements, the significant decline in deliveries of new business jets resulted in substantially lower demand for our business jet products,� stated CEO Robert Khoury.

For the year, fastener sales increased 7% to $103.7 million, while operating earnings improved 4% to $18 million. Khoury said strong fastener bookings in 2003 should lead to double-digit growth in sales and earnings for that segment in 2004.

Overall net sales for 2003 increased 4% to $624.4 million, but operating earnings were a loss of $53.5 million compared with a $76.1 million loss during 2002. The net loss for 2003 includes $31 million in costs associated with a companywide consolidation program that closed five facilities and eliminated 1,500 jobs, or 31% of the company�s positions. At year�s end, B/E Aerospace employed about 3,300 people. Web: beaerospace.com �2004 FastenerNews.com