July 22, 2014
Rockwell Collins reports third quarter fiscal 2014 earnings
Rockwell Collins reported total sales for the third quarter of fiscal year 2014 were $1.26bn, 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 $263m, an increase of $6m 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 $163m compared to earnings per share from continuing operations of $1.18 and income from continuing operations of $161m in the third quarter of last year. Sales to aircraft original equipment manufacturers increased due to higher hardware delivery rates for the Boeing 787 aircraft and higher customer funded development program sales, partially offset by lower deliveries at the light end of the business jet market. Aftermarket sales increased primarily due to higher service and support activities and higher Boeing 747-8 and 787 spares sales, partially offset by lower retrofit sales. Operating earnings for the third quarter of 2014 were about flat with the third quarter of 2013 and operating margin decreased 150 basis points. While operating earnings benefited from lower company funded research and development expense, operating margins were impacted by higher employee benefit related costs and less favorable incremental margins associated with higher sales of newer products and customer funded development programs.