Rockwell Collins Reports Sales Increase for Second Quarter 2014
[Via Satellite 04-22-2014] Rockwell Collins reported $1.27 billion in total sales for the second quarter of fiscal year 2014. This was a 12-percent increase in sales, and was attributed primarily to the acquisition of Aeronautical Radio, Incorporated (ARINC), a provider of transport communications and systems engineering solutions for the aviation industry, in Dec. 2013.
ARINC contributed $137 million of sales and $17 million of operating earnings to Rockwell Collins’ second quarter of 2014. Due predominantly to lower than previously estimated intangible asset amortization expenses, Rockwell Collins expects ARINC’s portion of Information Management Services’ fiscal year 2014 operating margin to improve from the 9 to 10 percent range to the 11 to12 percent range.
“These strong second quarter financial results, including 12 percent sales growth and 20 percent total segment operating margins, support our plan to accelerate growth and increase shareowner value,” said Rockwell Collins CEO, Kelly Ortberg. “Share gains from new OEM programs, expanding international sales, and growth in our new Information Management Services business more than offset anticipated declines in business aviation and defense. As we look forward, we expect to convert our sales growth into even higher levels of earnings and cash flow generation as we leverage our proven operating model.”