Rockwell Collins Q1 net income dips 14%

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Rockwell Collins has reported net income of $130 million for the first quarter of its current financial year, down 13.9% from the same period a year ago.

Sales decreased 1% to $1.09 billion for the quarter, while total operating profit for its Commercial and Government Systems divisions increased 2.3% to $218 million.

"First quarter sales were in-line with our expectations as continued growth in Commercial Systems nearly offset the decline in Government Systems," said Clay Jones, Rockwell Collins chairman and CEO.

The Commercial Systems segment, which serves transport, business and regional aircraft manufacturers and airlines worldwide, achieved sales of $511 million for the quarter, up 13% compared with $454 million reported for the same period last year.

Sales related to aircraft OEMs increased 14% to $265 million driven by higher product deliveries for the Bombardier Global and Challenger platforms, and increased sales of avionics to Boeing resulting from higher production rates for 777 and 747-8 aircraft.

Aftermarket sales increased $27 million, or 14%, to $221 million primarily driven by increased sales of spares related to new Boeing aircraft, para-military programmes and Chinese regional aircraft as well as higher service and support sales.

Commercial Systems first quarter operating profit increased 23% to $101 million, resulting in an operating margin of 19.8%.

According to the company, the increase was primarily attributable to higher sales volume, partially offset by the absence of a $7 million favourable adjustment to customer incentives recorded in the prior year.

The company reiterated its outlook for the fiscal year 2012, sticking to the forecast it provided on 15 September 2011, with sales expected to be in the range of $4.9-$5 billion.