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Rockwell Collins Inc. Message Board

  • bluecheese4u bluecheese4u Jan 18, 2013 8:01 AM Flag

    Rockwell Collins reports first quarter 2013 earnings per share increase 9% to $0.94

    Rockwell Collins reports first quarter 2013 earnings per share increase 9% to $0.94

    Full year earnings per share guidance raised to between $4.45 and $4.65

    CEDAR RAPIDS, Iowa (January 18, 2013) - Rockwell Collins, Inc. (NYSE: COL) today reported first quarter fiscal year 2013 net income of $132 million, an increase of 2%, compared to the same period last year. Earnings per share for the quarter were $0.94, $0.08 higher than earnings per share of $0.86 in the prior year. Earnings per share growth was higher than the rate of net income growth due to the favorable effect of the company's share repurchase program.

    The company reported total sales of $1.06 billion for the first quarter of 2013, a 3% reduction from $1.09 billion for the same period in 2012. Meanwhile, total segment operating margins increased in the first quarter of 2013 to 20.1 percent of sales compared to 19.9 percent of sales in 2012.

    Cash provided by operating activities for the first quarter of 2013 totaled $63 million, an increase of $127 million, compared to a $64 million use of cash in the first quarter of last year. The improvement in cash from operations was primarily driven by increased collections from customers, improved inventory performance and lower employee incentive compensation payments.

    "I am very pleased with our results this quarter, which generated 9% EPS growth and strong cash flow on declining sales," said Rockwell Collins Chairman and Chief Executive Officer, Clay Jones. "Despite continued government and economic uncertainty, our focus on the things we can control such as costs, capital deployment, and investments are paying off. For example, in the first quarter, we expanded operating margins, reduced our share count by 4%, and won a number of programs to enhance future growth."

    Jones went on to state, "We are off to a solid start in this year of transition for our company and should see improving performance throughout the year. Fortunately, we had already incorporated the impact of sequestration in our annual guidance and expect a greater benefit from our FY12 restructuring actions in subsequent quarters as well. Therefore, we are increasingly confident that we can meet or exceed our financial expectations."

    Following is a discussion of fiscal year 2013 first quarter sales and earnings for each business segment.

    Commercial Systems

    Commercial Systems, which provides aviation electronics systems, products and services to air transport, business and regional aircraft manufacturers and airlines worldwide, achieved 2013 first quarter sales of $516 million, an increase of $5 million, or 1%, compared to sales of $511 million reported for the same period last year.

    Sales related to aircraft original equipment manufacturers increased $17 million, or 6%, to $282 million driven by increased sales resulting from higher production rates for the Bombardier Globals, Boeing 787 and Airbus A330 aircraft, partially offset by lower deliveries at the light end of the business jet market. Aftermarket sales decreased $14 million to $207 million driven by higher sales of spares in the prior fiscal year.

    Commercial Systems first quarter operating earnings increased $5 million, or 5%, to $106 million, resulting in an operating margin of 20.5%, compared to operating earnings of $101 million, and an operating margin of 19.8%, for the same period a year ago. The increase in operating earnings and margin was primarily due to lower company-funded research and development expense. However, total research and development investment increased $7 million as resources were redirected to pre-production engineering programs, including the Boeing 737 Max, Bombardier CSeries and Global 7000/8000.

    Government Systems

    Government Systems provides a broad range of electronic products, systems and services to customers including the U.S. Department of Defense, other government agencies, civil agencies, defense contractors and ministries of defense around the world. Sales in the first quarter of 2013 were $546 million, a decrease of 6%, compared to $583 million reported for the same period last year.

    Avionics sales decreased $9 million, or 3%, from the first quarter of 2012 driven by lower sales from development programs, which are completing or transitioning to production, partially offset by higher tanker aircraft program sales. Communication product sales declined $11 million, or 8%, driven by lower airborne and satellite communication product sales, partially offset by increased deliveries of ground network radios. Surface solutions sales were $10 million, or 17%, lower than last year, resulting primarily from development programs either completing or transitioning to production, partially offset by increased international sales of Firestorm targeting systems. Fewer deliveries of Defense Advanced GPS Receiver products drove a $7 million, or 13%, decline in Navigation product sales.

    Government Systems first quarter operating earnings of $107 million resulted in an operating margin of 19.6%, compared to operating earnings of $117 million, and an operating margin of 20.1%, for the same period last year. The decrease in operating earnings and margin was primarily due to lower sales, partially offset by the completion of certain company-funded development programs related to GPS and communication products.

    Corporate and Financial Highlights

    General corporate expenses not allocated to the company's business segments increased $1 million to $13 million. The company's effective income tax rate was 29.8% for the first quarter of 2013 compared to a rate of 33.0% for the same period last year. The lower tax rate was primarily due to the favorable impact of certain international tax strategies.

    During the first quarter of 2013, the company repurchased 6 million shares of common stock at a total cost of $333 million. The company also paid a dividend on its common stock of $42 million, or 30 cents per share in the first quarter of 2013.

    Fiscal Year 2013 Outlook

    Earnings per share and tax rate guidance for fiscal year 2013 is being revised as a result of the net impact from the Federal Research and Development tax credit extension for calendar year 2012 and 2013.

    The following table is a complete summary of the company's updated fiscal year 2013 financial guidance:

    rockwellcollinsDOTcom/sitecore/content/Data/News/2013_Cal_Yr/RC/FY13RCNR08-Q1EarningsDOTaspx

 
COL
85.11-0.05(-0.06%)Nov 25 4:01 PMEST

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