Rockwell Collins Q4 net income up 17%

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Rockwell Collins has reported net income of $175 million for the fourth quarter of its current financial year, up 17% from the same period a year ago.

Sales increased 2% to $1.3 billion for the quarter, while total operating profit for its Commercial and Government Systems divisions increased 9% to $271 million.

"Commercial Systems continued to realise strong revenue growth and rapidly expanding operating margins, while Government Systems sustained its robust operating margins in the face of modestly declining sales," said Clay Jones, Rockwell Collins CEO.

The Commercial Systems segment, which serves transport, business and regional aircraft manufacturers and airlines worldwide, achieved sales of $517 million for the quarter, up 9%. Sales related to aircraft OEMs increased 16% to $268 million.

The company attributed this growth to higher product deliveries for the Bombardier Global business jet platform and increased sales of avionics to air transport OEMs resulting from higher aircraft production rates.

Aftermarket sales increased $6 million, or 3%, to $214 million primarily driven by increased service and support sales partially offset by the absence of Project Liberty spares delivered in same period last year, Rockwell Collins said.

Commercial Systems fourth quarter operating profit increased 28% to $101 million, resulting in an operating margin of 19.5%.

According to the company, the increase was primarily attributable to higher sales volumes, partially offset by higher R&D costs, sales and general and administrative expenses.

For the full year, the company posted net profit of $634 million, up 13% on sales of $4.81 billion, up 4%.

Jones said, "The balance and diversity of our business should enable continued revenue growth for fiscal year 2012 driven by the strength of commercial markets.

"We also expect to realise additional operating margin expansion, cash flow generation aligned with our long-term goals, and earnings per share growth at more than three times the rate of sales growth."

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