Rockwell Collins operating profit rises in third quarter

Rockwell Collins on Tuesday reported higher third-quarter earnings and sales from continuing operations, primarily because of the purchase of ARINC in December.

The Cedar Rapids avionics and communications supplier's third-quarter earnings from continuing operations were $163 million, or $1.19 per share, compared with income from continuing operations of $161 million, or $1.18 per share, in the third quarter of last year.

Third-quarter sales were $1.26 billion, up 12 percent from $1.13 billion in the same period in 2013. The figure was lower than the $1.3 billion analysts on average had expected, according to Thomson Reuters.

ARINC, which is included in the company's Information Management Services segment, contributed $134 million of sales and $20 million of operating earnings to the third quarter of 2014.

Commercial System sales rose 6 percent to $583 million in the third quarter from $551 million in the third quarter of last year. Sales for the Government Systems segment fell 6 percent to $535 million from $569 million in the same quarter last year.

Rockwell Collins CEO Kelly Ortberg said the third-quarter results show the company is on a path to accelerating growth.

'This financial performance, and our successful progress on the integration of ARINC, has enabled our company to once again raise our earnings per share guidance for the full year,” Ortberg said.

Rockwell Collins expects fiscal 2014 earnings per share in the range of $4.45 to $4.55, up from previous guidance of $4.40 to $4.55 per share.

Rockwell Collins said it is selling its satellite communications systems business, formerly known as Datapath. The company designs, manufactures and services ground-based satellite communication systems primarily for military customers.

The sale is expected to close in the final quarter of fiscal 2014.