DOW JONES NEWSWIRES
Rockwell Collins Corp.'s (COL) fiscal second-quarter net income
slipped 2.4% on weakness at its commercial-systems business,
helping push the company to again cut its full-year outlook.
The company now expects earnings for the year of $3.70 to $3.90
a share on revenue of $4.5 billion, down from February's lowered
estimate of $4.10 to $4.30 a share on revenue of $4.7 billion.
Many companies in the business-jet market have been hurt by
falling demand, although Chairman and Chief Executive Clay Jones
said in February that Rockwell's steadier defense business would
see it through the economic downturn. The company, which supplies
aircraft makers with cabin electronics and flight control, also
supplies avionics equipment to Boeing Co.'s (BA) 787 Dreamliner
plane, which has repeatedly delayed its launch date.
Jones said Tuesday that pressure from the weak economy, scarcity
of aircraft financing and high levels of used business-jet
inventory have resulted in production cuts by business-jet makers,
hurting the market for its parts.
For the period ended March 31, the maker of communication and
electronic systems for defense and commercial use reported net
income of $164 million, or $1.03 a share, down from $168 million,
or $1.03 a share, a year earlier. There were 2.4% fewer shares
outstanding in the most recent period.
Revenue decreased 4% to $1.14 billion.
Analysts polled by Thomson Reuters expected earnings of 98 cents
on revenue of $1.15 billion.
Rockwell Collins' commercial-systems revenue fell 14% as profits
dropped 21% on lower sales volumes. Government system sales grew
6.4% as earnings rose 26% on higher margins.
Rockwell Collins' shares closed Monday at $37.26 and haven't
traded premarket.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com