* Profit of $1.19/share from continuing operations vs
* Company to sell satellite business
(Adds planned business sale, government revenues, share price)
July 22 Rockwell Collins Inc, a maker of
avionics and other electronics systems for aircraft, on Tuesday
reported a better-than-expected quarterly profit, aided by
higher deliveries of equipment for planes such as the Boeing
Net profit fell to $158 million, or $1.15 per share, in the
fiscal third quarter ended June 30, from $164 million, or $1.20
per share, a year earlier. There were fewer
shares outstanding in the latest period.
However, the company earned $1.19 per share from continuing
operations, higher than the $1.17 analysts on average were
expecting, according to Thomson Reuters I/B/E/S.
Total sales rose 12 percent to $1.26 billion, aided by the
acquisition of the ARINC information management business.
Revenue at the commercial systems unit of Rockwell Collins,
which sells to Boeing Co and Airbus Group NV,
rose 5.8 percent to $583 million. Government system sales fell 6
percent to $535 million.
Rockwell Collins is beefing up its exposure to commercial
markets as U.S. defense spending wanes. Commercial revenues
stand to grow because of production of newer planes such as the
Boeing 787 and Airbus A350.
The company last year bought ARINC Inc, a provider of
systems that help airline pilots communicate, and has said that
purchase will enable it to bolster aviation information
management services. It formed a new segment for such services
that had $146 million in sales in the just-completed quarter.
In recent years, Rockwell Collins has exited some sectors of
defense. On Tuesday, it said it was selling a satellite
communications business formerly known as Datapath that mainly
caters to military customers.
"Government revenues continue to come under pressure, though
the sale of Datapath should help the overall company mix," RBC
Capital Markets analyst Rob Stallard said in a note to clients.
He added that commercial results were better than expected but
noted that higher employee benefit costs hurt margins in that
Rockwell raised the low end of its 2014 earnings forecast to
$4.45 per share from $4.40. It kept the higher end of the range
at $4.55. It said it expected sales for the year that ends in
September of $4.9 billion to $4.95 billion, down from a prior
view of up to $5.05 billion, reflecting the Datapath
Shares of Rockwell Collins were down 1.9 percent to $78.90
in morning trading.
(Reporting by Rohit T. K. and Sagarika Jaisinghani in Bangalore
and Karen Jacobs in Atlanta; Editing by Savio D'Souza and Tom