B/E Aerospace issues guidance below Street view

posted: 29 DAYS 20 HOURS AGO

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WELLINGTON, Fla. -B/E Aerospace Inc., which makes aircraft cabin interior products, on Tuesday issued fourth-quarter 2009 and full-year 2010 guidance below Wall Street estimates.

The company, which reported a 30 percent drop in third-quarter profit on weaker sales and higher expenses, said airlines have cut purchases of consumables and spare parts by more than 30 percent.

As a result, B/E Aerospace expects fourth-quarter earnings per share of 31 cents on revenue of $459.8 million. Analysts polled by Thomson Reuters expect, on average, earnings per share of 33 cents on revenue of $460.7 million.

For all of next year B/E Aerospace expects earnings per share of $1.40 on revenue of $1.85 billion. Wall Street expects 2010 earnings per share of $1.44 on revenue of $1.84 billion.

Beyond next year, B/E Aerospace expects a gradual recovery from the current downturn.

"We believe that many of the aircraft idled during the past year were flown right up until scheduled heavy maintenance was required," CEO Amin J. Khoury said. "As such, we believe there is a growing heavy maintenance backlog that will likely create additional demand for consumables and spares once revenue passenger miles turn positive on a year-over-year basis and demand for lift begins to improve from which the industry should slowly emerge."

Shares closed up 8 cents per share Monday at $20.15.

2009-10-27 08:57:06