* Says U.S. budget cuts to hurt revenue
* Stands by profit outlook for current year
Sept 20 (Reuters) - 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 current year.
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 percentages.
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 Stock Exchange.