Rockwell Collins earnings slip 9% in first quarter

Rockwell Collins reported Thursday that its earnings declined 9 percent in its first fiscal quarter on slightly lower sales.

The supplier of aviation and defense electronics had earnings of 86 cents per share, down from 95 cents per share in the first quarter of 2011.

Thirteen cents of the difference resulted from reduced availability of a federal tax credit for research and development, and earnings excluding the tax difference would have increased 4 cents, or 5 percent.

Chairman and CEO Clay Jones said his confidence the company can meet its earnings guidance range of $4.40 to $4.60 per share increased due to passage of the 2012 Defense Appropriations bill and "robust" conditions in commercial markets.

Sales in the defense-oriented Government Systems business declined $67 million, or 10 percent, to $583 million. The company's Commercial System reported an increase in sales of $57 million, or 13 percent, to $454 million.

Shares of Rockwell Collins stock were up sharply in afternoon trading.