Rockwell Collins earnings fall 26 percent

Profits fell by 26 percent at Rockwell Collins in the final quarter of its fiscal year, weighed down by slower sales to commercial markets and a charge related to the closing of its San Jose facility.

The Cedar Rapids-based avionics company reported earnings of $134 million, down $48 million from the fourth quarter of its 2009 fiscal year.

Earnings per share declined 29 cents, or 26 percent, to $0.84 compared to earnings per share of $1.13 for the same period a year ago.

Excluding the impact of the a restructuring charge of nine cents per share related primarily to the closing of the San Jose facility, and a onetime tax benefit of eight cents per share in the year-earlier quarter, fourth quarter results would have been down about 11 percent.

Chairman and CEO Clay Jones said the company's year was defined by significant challenges in its commercial aerospace market.

"Although our Commercial Systems business suffered from a decline in revenues and profitability due to market circumstances beyond our control, we were able to partially offset these impacts through the strength of our Government Systems business which realized record levels of sales and profitability,” Jones said.

Market conditions show signs of stabilizing, Jones added. The company expects the current quarter to be the low point in sales, and for conditions to improve throughout the remainder of its 2010 fiscal year.