Rockwell Collins profit up 26 percent

CEDAR RAPIDS - Higher first-quarter earnings and sales were reported Friday by Rockwell Collins, which also raised its profit and sales forecast for the year.

The Cedar Rapids avionics and communications equipment provider posted net income of $167 million, or $1.26 per share, for the quarter that ended on Dec. 31, up 29 percent from $131 million, or 98 cents per share, in the same quarter of fiscal 2014. The increase reflected inclusion of its acquisition of ARINC in December 2013, and a greater tax credit for research and development.

Sales rose 16 percent to $1.23 billion in the most recent period from $1.1 billion in the first quarter of fiscal 2014 on gains in the company's commercial jetliner and information management systems businesses.

Government systems revenue declined 1 percent.

Kelly Ortberg, Rockwell Collins president and CEO, told The Gazette that the company is off to a great start on its plan for fiscal 2015.

'Things are clicking, our markets are recovering and business is good,” Ortberg said. 'We realized strong revenue growth in our Commercial Systems and Information Management Services businesses in the quarter and a stabilization of revenue in our Government Systems business.”

Ortberg said Rockwell Collins secured another pillar for its long-term growth plan with a significant market share gain on the Boeing 777X.

'This builds on our positions on the 737 MAX, 767/KC-46 and 787 aircraft with Boeing,” Ortberg said. 'That will drive great growth for us for decades to come.”

Ortberg said Bombardier's recent decision to 'pause” development of its Learjet 85 business aircraft will not affect Rockwell Collins sales in the short term. He said the company has financial guarantees for its investment in Learjet 85 development.

Rockwell Collins raised its sales outlook for fiscal year 2015 from $5.2 billion to $5.3 billion. The company increased its earnings range to $5.10 to $5.30 per share from previous guidance of $4.90 to $5.10 per share.