B/E Aerospace, the world's biggest supplier of aircraft interior products, posted better-than-expected quarterly results on higher bookings at its commercial aircraft segment.
For the fourth quarter ended December 31, the company reported net income of USD$33.3 million, compared with a loss of USD$253.6 million a year ago.
Revenue fell 9 percent to USD$479.4 million.
Sales at the commercial aircraft segment increased to USD$239 million from USD$233.2 million.
The company said bookings improved during the fourth quarter to about USD$480 million, which represented a book-to-bill ratio of 1 to 1. Book-to-bill ratio compares orders on the books with those filled.
B/E Aerospace's free cash flow of USD$53.2 million for the quarter represented a free cash flow conversion rate of 160 percent of net earnings, the company said.
The company forecast first-quarter earnings below estimates on continued weak demand, but said it expects revenue in the remaining three quarters of the fiscal to be "very much better" as heavy aircraft maintenance will be required due to a projected increase in 2010 air traffic.
Global airlines continue to suffer from weak demand for passenger travel, especially in the premium segment, despite nascent signs of a recovery, chief executive Amin Khoury said.
"As airline traffic improves and the need to refurbish seats continues... volumes get better. They also have added to their backlog, so they have more visibility," Jefferies & Co analyst Howard Rubel said.
Weakness in air travel had led the global airline industry to cut flights and ground aircraft, hurting maintenance revenue for parts suppliers including Goodrich and Rockwell Collins.
B/E Aerospace, whose customers include leading plane makers Airbus and Boeing, also said it expects a "significant" increase in revenue, earnings and cash flows beginning 2011.
