* Says U.S. budget cuts to hurt revenue
* Stands by profit outlook for current year
Sept 20 Rockwell Collins Inc, which
makes aviation electronics systems, forecast lower-than-expected
earnings for 2014, citing federal government budget cuts and
declining business jet revenue.
The supplier of cockpit systems and other aircraft parts
said on Friday that it expects earnings of $4.30 to $4.50 per
share on revenue of $4.5 billion to $4.6 billion for the fiscal
year that begins Oct. 1.
Analysts on average were expecting $4.85 per share on
revenue of $4.99 billion, according to Thomson Reuters I/B/E/S.
The company said its 2014 forecast excludes its planned
purchase of Arinc, an aerospace communications company. Rockwell
stood by its profit outlook of $4.55 to $4.60 a share for the
Rockwell Collins is counting on commercial demand to drive
growth as the United States curbs defense spending. In its most
recent quarterly earnings report, its sales were roughly 51
percent government and 49 percent commercial.
The company said commercial systems sales would rise in the
mid-single-digit percentage range next year, but government
systems revenue would fall by mid-to-high-single-digit
Specifically, Rockwell said it expected budget cuts tied to
across-the-board spending cuts under "sequestration" to hurt
revenue by $200 million next year.
Shares of the company, which have risen 17 percent in the
last three months, closed at $74.28 Thursday on the New York