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United States : Rockwell Collins reports third quarter fiscal 2014 earnings

July 23, 2014

Rockwell Collins, Inc. today reported total sales for the third quarter of fiscal year 2014 were $1.26 billion, an increase of 12% from the same period in 2013, primarily due to the acquisition of ARINC. Total segment operating earnings for the third quarter of fiscal year 2014 were $263 million, an increase of $6 million from the same period a year ago. Third quarter fiscal year 2014 earnings per share from continuing operations were $1.19 and income from continuing operations was $163 million compared to earnings per share from continuing operations of $1.18 and income from continuing operations of $161 million in the third quarter of last year.

ARINC, which was acquired on December 23, 2013 and is included in the Information Management Services segment, contributed $134 million of sales and $20 million of operating earnings to the third quarter of 2014. Rockwell Collins now expects fiscal year 2014 operating margins for the Information Management Services segment to be about 13% (from 11% to 12%), due primarily to lower than previously estimated intangible asset amortization expense and lower integration costs. As a result of Information Management Services improved operating margin, the Company now expects fiscal 2014 earnings per share in the range of $4.45 to $4.55 (from $4.40 to $4.55).

The Company also announced it entered into an agreement to sell its satellite communications systems business formerly known as Datapath, Inc. (Datapath), which designs, manufactures and services ground-based satellite communication systems primarily for military customers. The sale is subject to customary closing conditions and is expected to close in the fourth quarter of fiscal 2014.

"This was another strong quarter for Rockwell Collins and demonstrates we are on a path to accelerating growth and increasing shareowner value," said Rockwell Collins Chief Executive Officer Kelly Ortberg. "This financial performance, and our successful progress on the integration of ARINC, has enabled our company to once again raise our earnings per share guidance for the full year."

Ortberg went on to state, "During the quarter we continued to make great progress on our growth strategies, including our recent selection to provide the flight control module of the Integrated Flight Control Electronics fly-by wire system for the Boeing 777X. In addition, the pending sale of Datapath is part of our strategy to reshape our Government Systems segment to align with the changing dynamics of the defense environment and focus on the core products and solutions that best fit with our overall plan for growth."

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Source: TendersInfo (India)

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