Strong quarter for Rockwell Collins

CEDAR RAPIDS - Rockwell Collins on Friday reported fourth-quarter earnings and sales largely in line with analysts' expectations.

The Cedar Rapids avionics and communications systems supplier posted net income of $173 million, or $1.23 cents per diluted share, for the quarter that ended on Sept. 30, compared with $175 million, or $1.28 per share, for the same period of fiscal year 2013. Income from continuing operations was $1.27 per share in the most recent quarter, which matched average Wall Street analyst estimates.

Fourth-quarter sales grew 15 percent to $1.4 billion from $1.2 billion in the final quarter of fiscal year 2013. Commercial systems sales increased 12 percent to $639 million from $571 million the same quarter last year, but government systems sales dipped 5 percent to $605 million from $636 million in the final quarter of fiscal year 2013.

Sales for the Information Management Systems segment, which include the December 2013 acquisition of ARINC, surged to $158 million in the fourth quarter of fiscal 2014 from $12 million in the same quarter of fiscal year 2013.

Kelly Ortberg, Rockwell Collins president and CEO, said the fourth quarter of fiscal year 2014 provides a great launching point for what he believes will be an even better fiscal year 2015.

'During the past year, we met or exceeded our guidance ranges for sales, earnings and cash flow, and our full-year results are right in line with our five-year outlook,” Ortberg said. "Our commercial original equipment market business grew 9 percent, driven by higher (Boeing) 787 and narrow body rates.

'Our international business grew to 43 percent of our total revenue. With the inclusion of ARINC, it increased 18 percent from 2013. We reshaped our government portfolio, including selling some noncore elements.

'We expect this to be the last year of declines for our government business.”