According to B/E Aerospace, it is the world's largest manufacturer of cabin interior products for commercial aircraft and for business jets.
The company sells its products and services directly to virtually all of the world's major airlines and aerospace manufacturers.
Since its organization as a corporation in Delaware in 1987, B/E Aerospace has substantially expanded the size, scope and nature of its business as a result of a number of acquisitions. Between 1989 and 2006, B/E completed 28 acquisitions for an aggregate purchase price of approximately $1.2 billion. These acquisitions enabled B/E to position itself as a preferred global supplier to the company's customers. During this period, B/E consolidated facilities and product lines, implemented lean manufacturing and continuous improvement programs and invested in IT. All of these efforts allowed the company to continually improve its productivity and expand its operating margins. In 2008, B/E completed the acquisition of the consumables solutions distribution business (HCS) from Honeywell International Inc. for the purchase price of approximately $1.0 billion. The combination of HCS with B/E's existing consumables products business created the world's leading distributor of aerospace fasteners and consumables. In October 2010, B/E acquired TSI Group, Inc. (TSI) and the aerospace fastener distribution business of Satair A/S (Satair) for a net purchase price of approximately $307 million and $162 million, respectively. TSI is a market leader in the design, engineering and manufacturing of customized, fully integrated, thermal management and interconnect solutions that address complex power management requirements of a broad range of customers in the aerospace and defense industries. TSI is included as a component of B/E's commercial aircraft segment. Satair is a distributor of consumables to European and Asia Pacific aerospace manufacturers and their suppliers and is included as a component of B/E's consumables management segment. On January 30, 2012, B/E acquired UFC Aerospace Corp. (UFC), a leading provider of complex supply chain management and inventory logistics solutions, for approximately $405 million in cash. In July 2012, B/E acquired 100% of Interturbine Aviation Logistics GmbH, Interturbine Logistics Solutions GmbH, and Interturbine Technologies GmbH, a provider of material management logistical services to global airlines and maintenance, repair and overhaul providers (MROs), for a net purchase price of approximately $245 million. UFC and Interturbine are included as components of the company's Consumables Management segment.
In June 2014, B/E acquired the outstanding shares of the Emteq, Inc. group of companies, a domestic provider of aircraft interior and exterior lighting systems, as well as aircraft cabin management and power systems for a purchase price of $253.2 million, net of cash acquired. The company also acquired the outstanding shares of the F+E Fischer + Entwicklungen GmbH & Co. KG group of companies, a leading Europe-based manufacturer of seating products for civilian helicopters for a purchase price of $211.7 million, net of cash acquired. The Company also acquired the outstanding shares of Wessex Advanced Switching Products Ltd., a company engaged in the production of lighting, control units and switches, based in Europe for a purchase price of $63.0 million, net of cash acquired. These acquisitions are included in the business jet segment.
On December 16, 2014, B/E completed the spin-off of KLX Inc. by means of the transfer of its Consumables Management segment. B/E retained its Commercial Aircraft and Business Jet segments.
B/E Aerospace is headquartered in Wellington, Florida and incorporated in Delaware.
B/E Aerospace operates through two principal business segments:
The following table highlights B/E's sales from 2013 to 2015 by segment:
A description of the business of each of the company's segments is set forth below.
In 2015, B/E's Commercial Aircraft segment generated revenues of $2,098 million compared to $2,059 million and $1,785 million in 2014 and 2013, respectively.
In 2015, this segment accounted for 77% of total sales. B/E estimates that, as of December 31, 2015, it had an aggregate installed base of products produced
by its commercial aircraft segment, valued at replacement prices, of approximately $10.4 billion.
Financial results for BE's Commercial Aircraft segment were as follows:
In the following, the products and services of B/E's Commercial Aircraft segment are presented.
According to B/E, it is the world's leading manufacturer of aircraft seats, offering a wide selection of first class,
business class, tourist class and regional aircraft seats. A typical seat manufactured and sold by B/E includes the seat frame,
cushions, armrests, tray table and a variety of optional features such as adjustable lumbar supports, electrical actuation systems,
footrests, reading lights, head/neck supports, and other comfort amenities. B/E also integrates a wide variety of in-flight entertainment
equipment into its seats, which is supplied by customers or third-party suppliers.
First and Business Class Seats: B/E's line of first class lie-flat seats incorporates full electric actuation, an electric ottoman, privacy panels and sidewall-mounted tables. B/E leverages its differentiated expertise in executive seating, divans, cabinetry, lighting, environmental controls and reliable use of exotic materials to develop these exclusive environments. B/E's business class seats incorporate features developed over 25 years of seating design. B/E has led this sector of the industry since the development and delivery of the industry's first mass produced lie flat seat in 2001. B/E offers the widest array of business class platforms in the industry to support airlines' differing requirements for business class zone density. The business class seats include electrical or mechanical actuation, PC power ports, personal entertainment device connectivity, gaming headsets, individual video monitors, leg rests, adjustable lumbar cushions, four and six-way adjustable headrests and fiber optic reading and accent lights. The first and business class products are substantially more expensive than tourist class seats due to these luxury accoutrements. B/E's deep understanding of airframe and system interfaces and ability to certify these suites and cabins within required lead-times, supports the company's market design and manufacturing capabilities.
Tourist Class and Regional Jet Seats: According to B/E, its Pinnacle® coach class seat has become the industry's most popular seat platform for single-aisle aircraft since its launch in late 2009. According to the company, the seat improves comfort and offers significantly improved passenger living space as well as benefiting the airlines with simplified maintenance and spare parts purchasing. Pinnacle® was engineered for use across the entire single-aisle aircraft fleet. In 2015, B/E introduced its new patented Meridian® main cabin seating platform, which is the industry's lightest full-featured seat. The Meridian® seat platform utilizes advanced proprietary technologies that significantly reduce cost of ownership, simplify maintenance and increase overall passenger living space and comfort. Since its launch, the Meridian® has received launch orders in excess of 550 aircraft.
Spares: Aircraft seats require regularly scheduled maintenance in the course of normal passenger use. Airlines depend on seat manufacturers and secondary suppliers to provide spare parts and kit upgrade programs.
According to B/E, it is the leading manufacturer of aircraft coffee and beverage makers. B/E manufactures a broad line of coffee makers, including the Essence® line of beverage makers, coffee warmers and water boilers. The company also manufactures a cappuccino/espresso maker. B/E is also the leading manufacturer of a broad line of specialized ovens, including high efficiency convection ovens, steam ovens and warming ovens. The company's DS Steam Oven uses a method of preparing in-flight food by maintaining constant temperature and moisture in the food. The DS Steam Oven addresses airlines' need to provide a wider range of food offerings than can be prepared by convection ovens. According to B/E, it is also the worldwide industry leader in the design, manufacture and supply of commercial aircraft refrigeration equipment. The company manufactures self-contained wine and beverage chillers, refrigerators/freezers and galley air chilling systems.
According to B/E Aerospace, it is the leading manufacturer of oxygen storage, distribution and delivery systems for both commercial and business jet aircraft. B/E has the capability to both produce all required components and to fully integrate overhead passenger service units with either chemical or gaseous oxygen equipment. B/E's oxygen equipment has been approved for use on all Boeing and Airbus aircraft and is also found on essentially all general aviation and VIP aircraft. The Boeing 787 was the first aircraft equipped with a passenger oxygen system using B/E's advanced Pulse Oxygen and passenger service unit technology. Boeing has awarded the company a sole source contract for the installation of the Pulse Oxygen™ system on its new 777X platform. The company also provides similar technology for passenger and crew oxygen systems for the A350. B/E has also been selected by both Boeing and Airbus to provide installed lavatory oxygen as their preferred line-fit solution for all platforms.
B/E's modular lavatory system utilizes the company's patented Spacewall® technology, which frees up floor space in the cabin, creating the opportunity to add up to six incremental passenger seats on each airplane. The modular lavatory systems integrate B/E's Aircraft Ecosystems® vacuum toilet, long-life LED lighting and tamper proof state-of-the-art lavatory oxygen system. According to the company, Aircraft Ecosystems® vacuum toilets have 25% greater reliability than existing systems and allow components to be replaced in a few minutes, as compared to up to an hour for existing systems. B/E's modular lavatory system has become standard equipment on all Boeing 737s, as well as the 737 MAX which enters service in 2017. Retrofit demand for B/E's lavatory systems could be substantial. B/E has also entered the vacuum wastewater system market. The company's vacuum wastewater system incorporates a proprietary design which eliminates the primary cause of failure which plagues other vacuum systems. In addition, B/E's systems include components and systems that will significantly lower the overall cost of ownership, simplify maintenance and improve lavatory hygiene. B/E's modular approach to the design of galley systems allows airlines to select galley positions and configurations for their specific operational needs, while minimizing total aircraft system weight. B/E also provides next generation galley systems for the Airbus A350, which is designed to accommodate "flex zones" allowing airlines to select from a wide range of galley configurations.
According to B/E Aerospace, it is a leading supplier of engineering, design, integration, installation and certification services for commercial aircraft passenger cabin interiors. B/E also offers in-house capabilities to design, manage, integrate, test and certify reconfigurations and modifications for commercial aircraft and to manufacture related products, including engineering kits and interface components. B/E provides a broad range of interior reconfiguration services which enable airlines to modify the cabin layout, install telecommunications and entertainment equipment, and relocate galleys, lavatories, overhead bins, and crew rest compartments. The expertise and resources of B/E's engineering and certifications unit is embedded in the company's major interiors densification campaigns, new cabin systems and product developments. The ability to leverage its knowledge of the aircraft electrical, environmental and stress environments allows B/E to optimize platform development to comply with challenging manufacturing and certification requirements.
In 2015, B/E's Business Jet segment generated revenues of $631 million compared to $540 million and $419 million in 2014 and 2013, respectively.
In 2015, this segment accounted for 23% of total sales. B/E estimates that, as of December 31, 2015, it had an aggregate installed base of business jet
and super first class equipment, valued at replacement prices, of approximately $1.9 billion.
Financial results for BE's Business Jet segment were as follows:
According to B/E Aerospace, it is a leading manufacturer of a broad product line of furnishings for business jets. The company originated what is today's market for "Super First Class" suites and cabins twelve years ago. The company's products include a complete line of business jet seating and sofa products, including electric fully berthing lie-flat seats, both fluorescent and LED direct and indirect lighting, air valves and oxygen delivery systems as well as sidewalls, bulkheads, credenzas, closets, galley structures, lavatories, wastewater systems, de-icing systems, cabin management systems and tables. B/E has the capability to provide complete interior packages for business jets and executive VIP or head-of-state aircraft interiors, including design services, interior components and program management services. B/E's product portfolio also includes premium lightweight helicopter seats for double engine helicopter airframes for civil and military applications.
B/E's business jet segment, which has had decades of experience in equipping executive, VIP and head-of-state aircraft, is the leading manufacturer of super first class cabin interior products for commercial wide-body aircraft. Super first class products incorporate a broad range of amenities such as luxurious first class cabins with appointments such as lie-flat seating, mini-bars, closets, flat screen televisions and mood lighting, which, until recently, were found only in VIP and head-of-state aircraft.
Revenues ('15): $2,730M +5.0%
R&D ('15): $274M -3.4%
Net Profit ('15): $286M +274.0%
CAPEX ('15): $81M -68.5%
B/E Aerospace - Products:
Aircraft seats; Monuments and partitions; Closets; Stowage bins; Class dividers; Lavatories; Sidewall panels; Aircraft flooring and ceiling; Aircraft interior lighting; Oxygen storage, distribution and delivery systems; Aircraft coffee and beverage makers; Coffee warmers; Water boilers; Aircraft ovens; Aircraft refrigeration equipment; Galley systems; Waste water systems; Thermal management solutions; Crew rest compartments; Engineering, design, integration, installation and certification services; Passenger-to-freighter conversions; Business jet seating and sofa products; Tables; Bulkheads.
B/E Aerospace - Major Defense Programs:
No information available.
B/E Aerospace - Commercial Programs:
| Airbus: A320 Series, A330, A350 XWB, A380 |
|Sales 2011-2015||Net Income 2011-2015||R&D Spending 2011-2015||# Employees 2011-2015|