DOW JONES NEWSWIRES
Rockwell Collins Inc.'s (COL) fiscal third-quarter profit fell
17% due to weakness in its commercial systems business, even as the
company reported an increase in government sales. Earnings beat
analysts' views, but revenue came in below estimates.
Many companies in the business-jet market have been hurt by
falling demand, although Chairman and Chief Executive Clay Jones
said earlier this year the company's steadier defense business
would see it through the downturn. Rockwell Collins, which supplies
aircraft makers with cabin electronics and flight controls, also
supplies avionics equipment to Boeing Co.'s (BA) 787 Dreamliner
plane, which Boeing has been repeatedly delayed. It's unclear how
another recently announced delay for the plane will affect
Rockwell.
Rockwell said Thursday its commercial systems business, which
provides aviation electronics systems, suffered from lower
787-related revenue on lower order volume because Boeing
rationalized inventory after a strike last year.
Meanwhile, for the period ended June 30, Rockwell Collins posted
income of $145 million, or 91 cents a share, down from $174
million, or $1.07 a share, a year earlier.
Revenue decreased 9.1% to $1.08 billion. The company's
acquisitions of DataPath and SEOS Group contributed $28 million to
revenue.
Analysts surveyed by Thomson Reuters expected earnings of 90
cents and revenue of $1.13 billion.
Rockwell Collins' commercial-systems revenue fell 26% as profit
dropped 46% on continued lower sales volumes. Government system
sales grew 7.2%, boosted four percentage points by the
acquisitions, as earnings rose 21%.
The company affirmed April's cut in its estimate for fiscal-year
earnings and boosted its revenue forecast $50 million to $4.55
billion because of the DataPath acquisition.
Shares closed Wednesday at $40.26 each and haven't traded
premarket.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com