* Adjusted profit of $1.07 a share, as expected
* Sales bolstered by ARINC acquisition
* Shares up 1 pct
(Adds company, analyst comments, details on acquisition, share
April 17 Rockwell Collins Inc, a maker
of avionics and other electronics systems for aircraft, reported
a lower quarterly profit on Thursday as income tax expense rose
but an acquisition bolstered sales, sending its shares up in
The company is beefing up its exposure to commercial markets
as U.S. defense spending shrinks. Commercial revenues stand to
grow because of production of newer airplanes such as the Boeing
787 and Airbus A350.
Net income in the fiscal second quarter ended March 31 fell
8 percent to $148 million, or $1.08 a diluted share, from $161
million, or $1.17 a share, a year earlier.
Adjusted profit of $1.07 a share was in line with analysts'
average expectations, according to Thomson Reuters I/B/E/S. The
year-earlier results included a tax benefit.
Rockwell last year bought ARINC Inc, a provider of aviation
connectivity services including flight planning and high-speed
data, and has said that purchase will enable it to offer more
information management services for aviation.
Chief Executive Kelly Ortberg told analysts during a
conference call Thursday that the ARINC purchase had already
paid off with a recent agreement Rockwell Collins signed with
British telecommunications provider Inmarsat to provide
Ka-broadband service to airlines.
Rockwell Collins said its increased business on new plane
programs and rising international sales "more than offset"
expected weakness in defense and business jets in the latest
"The long-term path for growth remains intact given the
aerospace cycle ramp and bizjet market share gains kicking in"
during fiscal year 2015, Sterne Agee analyst Peter Arment said
in a note to clients on Thursday.
Quarterly sales rose 12 percent to $1.27 billion. Analysts
had expected sales of $1.25 billion on average.
Commercial system sales rose 3 percent to $556 million,
helped by higher sales tied to maintenance and services and
increased deliveries of hardware for the Boeing 787.
Government-related sales dropped 2 percent to $567 million.
Sales in the new information management services segment came to
The company said it now expects profit of $4.40 to $4.55 a
share for the current fiscal year, compared with a prior
forecast of $4.35 to $4.55 a share. It cited better earnings
tied to ARINC for the revised forecast. Analysts expect it to
earn $4.45 a share for the year.
Shares of Rockwell Collins were up 1 percent at $79.39 on
Thursday. The stock has risen about 7 percent this year.
(Reporting by Karen Jacobs in Atlanta; Editing by Bernadette