By Emmet Oliver
April 30 (Bloomberg) -- BE Aerospace Inc., the world's biggest maker of aircraft cabin interiors, said first-quarter net income more than doubled because more airlines refurbished planes and bought the company's high-profit seats.
Net income rose to $32.1 million, or 40 cents a share, from $13.8 million, or 18 cents, a year earlier, the Wellington, Florida-based company said in a statement today. Sales rose 57 percent to $387.8 million.
Air traffic growth has generated more orders from BE Aerospace customers Boeing Co. and Airbus SAS, the world's largest commercial-plane makers. Airlines around the world are upgrading cabin interiors to attract travelers, the company said.
The purchase of new wide-bodied planes is ``just beginning to ramp up'' Chief Executive Officer Amin J. Khoury said. Orders for BE Aerospace's spare parts and products such as fasteners are at ``record levels,'' he said.
BE Aerospace shares advanced as much as $2.77, or 8 percent, to $37.50 a share, the largest increase in more than six months. The shares traded at $37.31 at 12:39 p.m. in New York.
The company boosted profit in part by increasing margins in the seating business. Operating profit in that division widened by 191 percent, the company said. The total order backlog increased 34 percent to $1.85 billion by the end of March. The company has $413 million in cash after raising $369 million in a share sale in March.
The company raised its full-year net income forecast to $137 million from $117 million, with earnings per share forecast to rise to $1.55, from $1.45 to $1.47. BE Aerospace will provide a 2008 outlook in July.
Costs of integrating Drager Aerospace GmbH and New York Fasteners Corp., purchased by BE Aerospace in 2006, affected performance in the cabin interior and spare parts units, respectively, the company said.
To contact the reporter on this story: Emmet Oliver in London at eoliver4@bloomberg.net.
Last Updated: April 30, 2007 12:41 EDT
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