Rockwell Collins, Inc. (NYSE: COL) forecasts revenues for 2011 to reach $4.8 to $5.0 billion, with operating margins maintained at 19.5 – 20.5%. As operating conditions continue to improve in the commercial markets, Rockwell Collins expects ‘double digit’ revenue growth in commercial air transport and business aviation. The Government Systems business segment is expected to slow in 2011 but the company sees it as a transitional year that should position it for stronger revenue growth in the years ahead. Overall, the government systems segment is expected to grow by a modest 2% in 2011. Sales of airborne solutions should grow at 3%, driven by new rotary and fix wing platforms including KC-X and CH-47. The growth potential is reduced by other programs that are winding down – including fighter jets and KC-135 GATM upgrades. The pullout of combat brigades from Iraq is also affecting the company, as with lower demand for navigation systems, while JTRS communications systems moving from development into low rate initial production. The company expects the introduction of micro DGAR to increase sales and compensate for these declines.
