UPDATE 3-B/E Aerospace cuts 2009 view, shares plunge

* Q1 adj EPS $0.41 beats est of $0.39

* Q1 rev up 11 pct

* Cuts 2009 outlook

* Sees 2009 to be trough year for bookings, earnings

* Shares slump more than 22 pct (Adds details, analyst comment, updates share movement)

By Bhaswati Mukhopadhyay

BANGALORE, April 27 (Reuters) - B/E Aerospace Inc (BEAV.O), the world's biggest supplier of aircraft interior products, posted better-than-expected first-quarter results, but lowered its 2009 outlook as it sees more turbulence in the airline industry.

Shares of the Wellington, Florida-based company tumbled more than 22 percent, making it one of the top losers on Nasdaq.

"We believe that 2009 will be the trough year for B/E Aerospace bookings, backlog and earnings," Chief Executive Amin Khoury said in a statement.

Until order rates and shipments for consumables and spares improve, it is unlikely that quarterly earnings will exceed the first-quarter level, the CEO said.

"2009 looks like a throwaway year," analyst Alex Hamilton of Jesup & Lamont Securities said. "The real question is how 2010 and beyond will look for the company."

The big change in the forecast is that while earlier the company had expected sequential improvement throughout the year, now they do not expect any quarter to exceed the first quarter, Hamilton said.

The business jet segment, which accounts for about 10 percent of the revenue, has been hit the hardest as business jet makers cut delivery rates, in some cases, by up to 40 percent.

The company said it does not expect to see any recovery in this business for the next two or three years.

CEO Khoury also said air freighters were being parked at unprecedented rates, and demand for passenger-to-freighter conversions was likely to be soft for the foreseeable future.

"The resulting lower yields for the global airline industry are causing our customers to increase the number of parked aircraft and to further defer new aircraft deliveries," he added.

OUTLOOK CLOUDY

For 2009, B/E Aerospace expects earnings of about $1.50 per share, excluding acquisition, integration and transition (AIT) costs of about 10 cents a share.

The company said 2009 revenue is expected to be about $1.9 billion, or about 23 percent lower than 2008 pro forma revenue, giving effect to the inclusion of the Honeywell International Inc's (HON.N) consumables solutions business for all of 2008.

Analysts on average were expecting earnings of $1.79 a share, before special items, on revenue of $2.19 billion, according to Reuters Estimates.

Earlier, the company had forecast 2009 earnings of $2.00 a share, excluding HCS integration costs of about 10 cents a share, on revenue of about $2.25 billion.

B/E Aerospace will be able to maintain margins for the balance of the year by pruning costs through job cuts in the consumables business, the company said in a conference call.

EARNINGS TOP STREET

For the first quarter, B/E Aerospace reported net income of $37.9 million, or 38 cents per share, compared with $48.5 million, or 53 cents a share, the year earlier.

Excluding costs related to the acquisition of the HCS unit, profit was 41 cents a share.

Revenue rose 11 percent to $523.7 million, reflecting the inclusion of the HCS unit.

Analysts were expecting 39 cents a share, before special items, on revenue of $500.5 million.

Retrofit program deferrals and substantially lower commercial aircraft segment spares and consumables revenue hurt the company in the first quarter.

Sales at the commercial aircraft segment fell 19 percent, while business jet segment revenue was down 20 percent.

Commercial aircraft is a big concern because it is going to get affected by deferrals and delays, analyst Hamilton said.

B/E Aerospace fits out commercial and business jets with oxygen masks, food carts and other equipment.

Its customers include world's leading plane makers -- Boeing Inc (BA.N) and Airbus, which is owned by European aerospace company EADS (EAD.PA).

Shares of the company, however, pared early losses to trade down $2.64 at $10.32 in afternoon session on Nasdaq. They hit a low of $10.05 earlier in the day. (Additional reporting by Ajay Kamalakaran; Editing by Anil D'Silva)