B/E Aerospace Record First Quarter Results Exceed Expectations; Record Sales Up 22%; Record Net Earnings Up 51%; 2008 EPS Guidance Increased

Business Wire, April 28, 2008

WELLINGTON, Fla. -- B/E Aerospace, Inc. (NASDAQ:BEAV), the world's leading manufacturer of aircraft cabin interior products and the leading aftermarket distributor of aerospace fasteners, today announced financial results for the first quarter of 2008.

HIGHLIGHTS

* Record first quarter revenues of $473.2 million reflect 22.0 percent year-over-year organic growth.

* Record first quarter operating earnings of $77.4 million increased by 37.2 percent compared with the first quarter of the prior year. First quarter operating margin of 16.4 percent expanded by 190 basis points compared to the first quarter of the prior year.

* Record first quarter earnings before income taxes of $74.6 million increased by 62.9 percent compared to the same period in the prior year.

* Record first quarter net earnings of $48.5 million increased by 51.1 percent compared to the first quarter of the prior year. First quarter net earnings per diluted share of $0.53 increased by 32.5 percent, despite the 500 basis point increase in the effective tax rate and the 16 percent increase in the number of weighted average shares outstanding. On a comparable effective tax rate basis, earnings per share increased by 43 percent.

* Record first quarter earnings per diluted share of $0.53 were $0.04 per share higher than company guidance provided in February 2008 and $0.02 per share higher than consensus estimates.

* Bookings for the quarter totaled approximately $600 million representing a book-to-bill ratio of approximately 1.2:1. Backlog as of March 31, 2008 was a record at approximately $2.3 billion and is up approximately 25 percent compared to the first quarter in the prior year.

* Full-year 2008 financial guidance increased by $0.06 per share to approximately $2.35 per diluted share.

FIRST QUARTER PERFORMANCE

The 37.2 percent growth in operating earnings as compared to the first quarter of last year was driven by the 22.0 percent increase in revenues and the 190 basis point expansion in operating margin. Revenue growth was driven by robust market conditions and market share gains. The 16.4 percent operating margin primarily reflects excellent margin expansion in the distribution, interior systems and business jet segments. The 190 basis point margin improvement was achieved in spite of start-up and learning curve costs on new programs in the seating and engineering services segments. On a consolidated basis the incremental operating margin for the first quarter of 2008 was 24.6 percent. Margin expansion in the seating and engineering services segments is expected to drive further corporate consolidated margin improvement in the second half of the year.

Net earnings for the first quarter were $48.5 million, or $0.53 per diluted share as compared with net earnings of $32.1 million, or $0.40 per diluted share in the first quarter of 2007. First quarter 2008 net earnings increased by $16.4 million, or 51.1 percent, as compared with the first quarter of the prior year. First quarter 2008 earnings per diluted share increased by 32.5 percent, or $0.13 per diluted share, as compared with the same period in the prior year, despite a 500 basis point increase in the effective tax rate and a 16 percent increase in the number of weighted average shares outstanding in the 2008 period. On a comparable effective tax rate basis, using the expected 35 percent 2008 effective tax rate in both periods, 2008 first quarter earnings per share were 43.2 percent higher than the same period last year.

FIRST QUARTER SEGMENT DISCUSSION

Net sales by segment were as follows:

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The distribution segment revenue growth rate of 25.9 percent reflects the significant 2006 and 2007 investments in product line expansion, the broad-based increase in aftermarket demand for aerospace fasteners, and continued market share gains.

The interior systems segment revenue growth rate of 14.9 percent reflects both higher aftermarket demand as well as a higher level of new aircraft deliveries. Seating segment revenue growth of 4.5 percent was consistent with scheduled initial deliveries of major new programs which have now begun. Seating segment revenues are expected to be significantly higher in the second, third and fourth quarters of 2008.

Business jet segment revenues increased by 64.9 percent reflecting strong demand for business jet products and more normalized shipments of super first class products on new programs begun in 2007. The engineering services segment revenue growth was 61.5 percent reflecting the ramp-up of initial shipments on new programs.

The following is a summary of operating earnings by segment:

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Distribution segment operating earnings were $35.3 million, which was 79.2 percent greater than the same period last year. The distribution segment operating margin expanded by 860 basis points to 28.9 percent as compared with the first quarter of 2007 reflecting the first full quarter of synergies from the New York Fasteners integration, a significantly improved and expanded mix of products on a number of long term JIT agreements negotiated during 2007, and higher margins on these programs as a result of the company's inventory stocking business model.