* U.S. budget deal reduces spending cuts' impact on gov't
* ARINC purchase also boosts outlook
Jan 21 Rockwell Collins Inc, which makes
electronics systems for aircraft, reported a lower quarterly
profit on Tuesday, but raised its full-year outlook, saying
government-related sales would not fall as much as previously
Net income in the quarter totaled $131 million, or 96 cents
a share, in the fiscal first quarter ended Dec. 31, compared
with $132 million, or 94 cents a share, a year earlier. There
were fewer outstanding shares in the most recent quarter.
Analysts had expected 94 cents a share, on average,
according to Thomson Reuters I/B/E/S.
Total sales rose 1 percent to $1.07 billion, the company
said. Commercial system sales rose 3 percent to $521 million,
while government-related sales dropped 3 percent to $532
Rockwell Collins said it now expects full-year government
system sales to fall in the mid-single-digit percentage range
because of the passage of a U.S. budget agreement, the
Murray-Ryan Bipartisan Budget Act. The legislation would reduce
the effect from U.S. spending cuts under sequestration which the
company had previously expected for its defense segment.
Rockwell Collins is also beefing up its exposure to
commercial markets as U.S. defense spending shrinks. 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 information management
services for aviation. It has formed a new segment devoted to
such services that had $18 million in sales in the
Rockwell Collins said it now expects full-year sales of
$4.95 billion to $5.05 billion, compared with a prior view of
$4.5 billion to $4.6 billion, and profit in the range of $4.35
to $4.55 per share, against an earlier outlook of $4.30 to $4.50
The company said the brighter view reflected the outlook for
government systems and benefits from the ARINC purchase.
Rockwell Collins shares were last up 0.67 percent to $78.10
in early afternoon trading.