UPDATE 2-B/E Aerospace sees weak 2010 revenue, shares fall
* Q2 EPS $0.39 vs est $0.34
* Reiterates 2009 view
* Expects 2010 EPS to be flat
* Shares fall 8 pct (Recasts; adds conference call details, analyst comments, updates share movement)
By Bhaswati Mukhopadhyay
BANGALORE, July 28 (Reuters) - B/E Aerospace Inc (BEAV.O) said it expects 2010 revenue to fall about 5 percent, partly due to a decline in bookings this year and fewer new commercial aircraft deliveries in 2010, sending its shares down 8 percent.
The world's biggest supplier of aircraft interior products, however, sees 2010 earnings to be flat due to improved margins.
For 2009, B/E Aerospace -- whose three key segments are consumables management, commercial aircraft and business jet -- reiterated its outlook of earnings of about $1.40 per share, on revenue of about $1.9 billion.
"We continue to believe that 2009 will be the trough year for B/E Aerospace bookings, backlog and earnings," Chief Executive Amin Khoury said on a conference call with analysts.
Jesup & Lamont Securities analyst Alex Hamilton said management's guidance, although not rosy, implies that the company has definitely hit bottom.
Hamilton, who has a "hold" rating on the stock, said it is not a good entry point for the stock because of the "cloudy" outlook.
"The recovery seems to be sliding out a little bit for the company," Hamilton said.
The airline industry has been battered by a steep decline in business travel demand as companies slog through the economic recession.
Business jet deliveries are not projected to improve until sometime in 2012, the company said.
Q2 PROFIT TOPS STREET
For the second quarter, net income fell to $34.7 million, or 35 cents per share, from $53.9 million, or 59 cents a share, a year ago. Excluding one-off items, it earned 39 cents a share.
Analysts on average were expecting earnings of 34 cents a share, before special items, according to Reuters Estimates.
Net sales came in at $474.8 million, trailing analysts' average expectation of $485.8 million.
Sales were impacted by stringent cash conservation measures by airlines and aerospace manufacturers, including deferring refurbishments and running down inventories, CEO Khoury said in a statement.
Revenue at the consumables management segment fell 30 percent on a pro forma basis. The segment will benefit when airline traffic improves as it deals with aftermarket sales, analyst Hamilton said.
B/E Aerospace sells fasteners, bearings, seals, electrical components and other products through its consumables management segment.
The commercial aircraft segment, which deals with retrofits, saw revenue dip 31 percent on a pro forma basis.
Shares of the company were trading down 97 cents at $14.34 Tuesday afternoon on Nasdaq. They had touched a low of $14.05. (Reporting by Nivedita Bhattacharjee and Bhaswati Mukhopadhyay; Editing by John Stonestreet, Anne Pallivathuckal)
