Rockwell Collins earnings up 25 percent in first-quarter

CEDAR RAPIDS - Rockwell Collins boosted its fiscal 2011 earnings guidance on Thursday, Jan. 20, after reporting a 25 percent jump in first quarter earnings.

The Cedar Rapids based aerospace and defense electronics company reported net income of $151 million, up $30 million from the first quarter of fiscal 2010.

Earnings per share improved 25 percent, or 20 cents, to 96 cents.

“We are off to a great start for the fiscal year with robust revenue and earnings per share growth,” said Clay Jones, Rockwell Collins president, chairman and CEO.

Jones pointed to double-digit sales gains in both the original equipment manufacturer market and in the aftermarket as the commercial aerospace sector recovered from the economic downturn.

Overall sales increased 8 percent, or $83 million, to $1.11 billion.

Sales to aircraft manufacturers increased 16 percent, to $233 million. Aftermarket sales improved 20 percent to $200 million in the Commercial Systems division. The bulk of OEM deliveries were for the Boeing 787 and Cessna JC4 aircraft, and for multiple Bombardier aircraft.

Operating earnings from the commercial side of Rockwell Collins' business improved 24 percent to $84 million, as sales grew 12 percent.

Operating earnings from the defense side of the company's business dipped 2 percent to $131 million, despite a 6 percent increase in sales.

Nine cents per share of earnings resulted from legislation that extended a federal research and development tax credit through 2011, and applied it retroactively to Jan. 1, 2010.

The company raised its earnings guidance to Wall Street by 10 cents per share, to a range of $3.85 to $4.05 per share.

Rockwell Collins shares were nearly unchanged at $63.23 in mid-morning trading on the New York Stock Exchange.