New CEO plans to accelerate Rockwell Collins growth

The new leadership at the helm of Rockwell Collins is laser focused on growing revenue and market share.

Kelly Ortberg, 53, was elected chief executive officer of the $4.7 billion Cedar Rapids avionics and communications company on July 30, succeeding Clay Jones. Ortberg, a Dubuque native,  became president of Rockwell Collins in September 2012, paving the way for the leadership transition.

Jones, 64, who retired on July 31, will continue as non-executive chairman.

Rockwell Collins Commercial Systems sales grew 7 percent in the third quarter, but Government Systems sales declined 11 percent. While foreign military sales contracts will offer a stable revenue stream, continued uncertainty about U.S. defense spending due to the specific effects of sequestration will present challenges for Ortberg and Rockwell Collins's senior leadership.

• Also read: Clay Jones: 'We knew that the world was changing'

Meeting with The Gazette on July 30, Ortberg said his top priority as CEO will be accelerating the company's return to  growth.

"We're going to do that through a focus on the international market, enhancing our core capabilities and a very strong focus on innovation," Ortberg said. "In the international market, there are growth opportunities for Rockwell Collins in traditional and emerging markets.

"We're seeing growing share in traditional markets like Europe with Airbus and AgustaWestland (a British-Italian helicopter manufacturer) and in China, which is not a new market for Rockwell Collins. We've been there for 30 years, and we see great opportunities as China expands its aviation portfolio.

"There also are markets that we have not served traditionally like Brazil, where we have great opportunities on commercial and government aircraft. India will be one of the largest importers of defense goods over the next decade."

He cited the Middle East for growth in the company's commercial and military segments.

Ortberg said enhancing Rockwell Collins core capabilities will involve transferring technology between markets. He pointed to reducing the size of the company's head-up pilot display technology as an example, enabling its installation on a new class of business jets.

Ortberg said Rockwell Collins will continue to invest between 18 percent and 20 percent of its annual revenue on research and development, a commitment to what he termed the historic "life blood" of the company. With the upcoming Quadrennial Defense Review due in 2014 expected to include a reduction in the nation's military force, Ortberg sees opportunities for Rockwell Collins.

"Automating and providing functionality with technology that a person previous handled will be important going forward," Ortberg said. "That's the area that we work in. We work to eliminate the number of steps involved and ultimately that could reduce the number of troops required."

Although organic growth through internal product development will continue, Ortberg said Rockwell Collins will look for "bolt on" acquisitions that provide either new technology or access to new markets.

"I think you will see a lot more joint ventures, partnerships and teaming agreements as we continue to explore the international market," he explained. "Partnerships are especially important in international markets to get customer affinity or meet in-country industrial offset requirements."

The global nature of Rockwell Collins's business operating across 27 countries will require Ortberg to understand cultures beyond his native Iowa.

"My job is not just to identify with the work ethic of Iowans, but to identify the work ethic of Rockwell Collins and drive those core attributes into our company globally," Ortberg said. "That way, we will continue to have the ethics, innovation and leadership that we will require across all of our 19,000 employees."