B/E Aerospace To Book $30 Million Of Charges To Cover Cost And Job Cuts
B/E Aerospace Inc. said Wednesday it expects to book after-tax charges of about $30 million in the third quarter to cover cost cuts, including shedding about 450 employees and the closure of some facilities. The cuts are needed to improve efficiencies to combat slower revenue growth expected in 2015 and 2016, Chief Executive Amin Khoury said in a statement. "We expect our initiatives to offset inflationary pressures on wages, occupancy and infrastructure costs and enable us to continue to generate incremental year-over-year margin improvement." he said. Khoury said the company is still expecting 2015 revenue of about $2.8 billion and earnings per share of about $3.03, excluding the charges. The company expects 2016 revenue to grow 1% to 2%, followed by stronger growth in 2017. Shares were not yet active in premarket trade, but are down 14.8% in the year so far, while the S&P 500 has lost 4%.
Copyright © 2015 MarketWatch, Inc.