We will begin this morning with remarks from Amin Khoury, our founder, Chairman and Chief Executive Officer, and then we will take your questions. For today's call, we have prepared a few slides to help you follow our discussion. You can find our presentation on the Investor Relations page of the B/E Aerospace website at beaerospace.com. In addition, copies of the slides will be posted on our website after the call for you to refer to. Joining us on the call this morning are Werner Lieberherr, President and Chief Operating Officer; and Tom McCaffrey, Senior Vice President and Chief Financial Officer.As always, in our prepared remarks and in responses to your questions, we rely on the Safe Harbor exemptions under the various Securities acts and our Safe Harbor statements in the company's filings with the Securities and Exchange Commission. We will address your calls -- I mean, we will address your questions following our prepared remarks. At that time, the operator will provide instructions. [Operator Instructions] Now I will turn the call over to Mr. Khoury. Amin J. Khoury Thank you, Greg, and good morning, everyone. We are very pleased with our first quarter results, which were announced earlier this morning and which were above earlier expectations. Our results include record revenues up 25%; record operating earnings up 30%; operating margin expanded 70 basis points to 17.4% -- actually 17.9% adjusted; record earnings per share up 37%; and record bookings and backlog. Backlog, both booked and awarded but unbooked, was up 35%. The margin expansion was driven by our commercial aircraft and business jet segments, which more than offset the margin drag from the consumables management segment acquisitions. During the quarter, we completed the acquisition of UFC Aerospace, an innovative provider of supply chain management and inventory logistic solutions to aerospace original equipment manufacturers. In addition during the quarter, we opportunistically took advantage of historically low-interest rates and issued $500 million or 5.25% senior unsecured notes due 2022.
Market share gains driven by our successful R&D innovations, together with accretive strategic acquisitions and successful operational efficiency initiatives, drove both the 37% earnings growth and the $8.1 billion record backlog. For 2012, we are guiding to a substantially improved earnings outlook of approximately $2.75 per diluted share, but now including approximately $0.13 per share interest expense drag on earnings from undeployed capital from the aforementioned senior unsecured notes offering.Today I would like to spend a few minutes discussing the current market environment. In addition, we'll provide an update on the recent Hamburg, Germany aircraft interiors exposition which was our most successful expo ever. Then we will discuss our results for the quarter and lastly, we will review our current financial guidance for 2012. Now let's briefly discuss the commercial aerospace market environment. First, let's take a quick look at what happened in the full year 2011. The 2011 was a year of real uncertainty. The world's third largest economy, Japan, had a devastating earthquake and subsequent tsunami. The Middle East was in turmoil due to the Arab spring uprising. Europe experienced a sovereign debt crisis and recession. North America experienced slow economic growth, and oil prices spiked, averaging $111 per barrel for Brent crude during the year. Notwithstanding all of these factors, global passenger traffic grew a very healthy 6% and load factors were at record levels, yields were strong, and global airlines earned $8 billion in profits. As we have moved into 2012, global passenger traffic continues to grow and airline load factors continue near all-time highs. Passenger traffic showed strong gains in February, up approximately 8.6% versus the same period last year and up 7.2% year-to-date through the end of February. International traffic was up 9.3% in February and is up 7.3% year-to-date. And premium international traffic continues to be a positive story, up approximately 6.3% in February. Read the rest of this transcript for free on seekingalpha.com