Rockwell Collins, Inc. today reported third quarter fiscal year 2012 income from continuing operations of $166 million, an increase of 6%, compared to $157 million in the same period last year. The company reported total sales of $1.21 billion for the third quarter of 2012, an increase of 1%, while sales reported for the same period last year were $1.19 billion.

Sales of the the company’s Government Systems’  (defense electronics operations) totalled $679 million in the third quarter of 2012, an increase of $11 million, or 2%, compared to the $668 million reported for the same period last year. Avionics sales increased $40 million, or 11%, from the third quarter of 2011 due to higher sales for Saudi F-15 fighters and the KC-46, KC-10 and KC-390 tanker programs. Communication product sales improved $14 million, or 9%, due to higher sales of networked communication and data link products.

However, surface solutions sales decreased $32 million, or 39%, resulting from the impact of two programs terminated for convenience in 2011, lower sales on the Joint Precision Approach and Landing System program as it transitions from development to production and reductions in deliveries of optical products for surface based programs. Sales of Navigation products also declined by $11 million, or 16%, driven primarily by fewer deliveries of Defense Advanced GPS Receiver products. Government Systems third quarter operating earnings of $148 million resulted in an operating margin of 21.8%.

“In the current challenging market conditions, our balanced business model and capital deployment strategies are providing the stability and shareowner focus that you would expect from Rockwell Collins,” Chairman, President and Chief Executive Officer, Clay Jones said. “For the first time in five quarters, Government Systems sales increased to complement moderating revenue in Commercial Systems due to difficult comparables and the impacts from a recent bankruptcy filing by one of our customers.” Jones went on to state, “The slowdown in the global economic recovery and bankruptcy of Hawker Beechcraft continues to impact our initial projections of the business aviation growth.”

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