BE Aerospace Inc. increased its net income by more than half in the third quarter by acquiring new businesses and expanding its profit margin.
The airplane interior maker, based in Wellington, Fla., raised its 2011 earnings outlook, as it soared past Wall Street's expectations for a third straight quarter.
BE's net income in the period ended Sept. 30 rose to $65.4 million, or 64 cents per share, from $41 million, or 41 cents per share, in the same period a year earlier.
Much of the increase came from BE's commercial aircraft division, where operating earnings leaped 46 percent. Operating earnings in the much smaller business jet division rose 88 percent.
Revenue rose 29 percent, to $636 million from $495 million in the same part of 2010. Part of that was a result of two acquisitions: TSI Group Inc., a fastener distribution business that belonged to Satair A/S, and LaSalle Lighting. Without them, revenue would have risen about 17 percent.
The results were better than analysts expected. Wall Street projected net income of 55 cent per share on revenue of $628.1 million.
BE's order backlog grew to a record $6.95 billion, a 26-percent increase over last year. As a result, the company set its 2012 earnings expectations of $2.65 per diluted share, a 24 percent increase over 2011, excluding taxes. That's right in line with the expectations of analysts surveyed by FactSet.
The company also boosted its full-year 2011 guidance by 10 cents per share, to $2.20 per share. Analysts expected $2.16. The new guidance is 30 cents per share higher than what the company offered a year ago.
Looking ahead to 2012, BE expects full-year earnings of $2.65 per share. Revenue is forecast to grow to about $2.8 billion, around 12 percent above the 2011 outlook for $2.5 billion.
BE makes and sells parts used in airplane interiors. Its products include furnishings for business jets, chairs, tray tables and galley equipment.
BE reported its results before the market opened. Its shares closed Tuesday at $36.27.