Rockwell Collins earnings charge higher

Rockwell Collins expects to take a higher charge to its earnings in the first quarter of fiscal year 2016 for the costs of a voluntary employee severance offer.

In a regulatory filing with the U.S. Securities and Exchange Commission, the Cedar Rapids avionics, communications and information management provider said it will take a charge of $35 million to $45 million, primarily for employee severance costs.

The estimated charge increased from a range of 10 to 15 cents per share that was included in the company's earnings guidance on Sept. 18 to a range 18 to 24 cents per share.

Rockwell Collins on Oct. 10 said 468 employees accepted a voluntary separation retirement incentive offer. The number of employees accepting the deal was higher than the company had expected.

When it announced the offer in September, Rockwell Collins had a goal of reducing its overall head count by 500, or 2.5 percent.

The company cited projected continued slow sales of business jets, a segment of the commercial jet market that accounts for 20 percent of overall revenues.

A Rockwell Collins spokeswoman said the company will continue to review its staffing needs in light of the number of employees agreeing to leave the company by Dec. 18.