Avionics supplier Rockwell Collins posted lower-than-expected results Tuesday as weak commercial aerospace sales offset strength in government demand.

The company said it was starting to see signs of stabilization in commercial markets and expected improvement next year.

"We do believe that the first quarter will be the low-water mark for our business, and we should post sequential growth over the course of 2010," chief executive Clay Jones said.

Net income fell 26 percent to USD$134 million for the fiscal fourth quarter that ended September 30, compared with USD$182 million a year earlier.

Sales fell about 7 percent to USD$1.19 billion.

The government systems division, which supplies the Pentagon and other government agencies, had a sales rise of 17 percent to USD$741 million in the fourth quarter. In the commercial division, which caters to plane makers and airlines, sales fell 30 percent to USD$449 million.

Rockwell Collins has suffered this year as weak air travel led to production cuts for planes and business jets.

But the company cited improving flight cycles in business jets in recent months and said the airline travel market could gain traction by spring of next year, a factor that could help lift its product and maintenance sales.