Rockwell Collins saw its fiscal third quarter net income fall by $29 million to $145 million as sales in its commercial business dropped by 26%.
The 17% decrease in profits accompanies a 9% fall in sales to $1.1 billion. Rockwell Collins attributes an organic revenue decline of $138 million to continued market weakness in commercial aerospace, partially offset by growth opportunities in its government business.
The performance in both sectors mirrored that assessment as sales in Rockwell Collins' commercial systems business decreased from $587 million to $433 million. Reduced production rates by original equipment manufacturers (OEMs) and a decline in 787 related revenues drove a 35% decline in sales to OEMs during the quarter to $211 million. The company also cites low order volumes driven by Boeing post labour strike inventory rationalisation and reduced sales of airline selectable equipment as drivers in the decrease in OEM sales.
Earnings in the company's commercial sector during the quarter fell 46% to $75 million.
Rockwell Collins posted positive results in its government systems business as sales grew by 7% to $651 million and operating earnings increased 21% to $158 million.
The company grew its cash balances to $218 million at the end of its fiscal third quarter from $175 million posted 30 September.