* 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 (Recasts; adds details)
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.
“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, he added.
Air freighters are being parked at unprecedented rates, and demand for passenger-to-freighter conversions is likely to be soft for the foreseeable future, Khoury said.
B/E Aerospace’s international passenger traffic fell by more than 10 percent in February compared with the year ago.
Business jet makers also reduced delivery rates, in some cases, by up to 40 percent, the company 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.
“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,” the CEO said.
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.
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 AIT 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, on average, 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.
Shares of the Wellington, Florida-based company closed at $12.96 Friday on Nasdaq. (Reporting by Ajay Kamalakaran and Bhaswati Mukhopadhyay in Bangalore; Editing by Anil D’Silva)