Rockwell Collins Gets Boost From Higher Deliveries

July 22, 2014

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Rockwell Collins on Tuesday reported a better-than-expected quarterly profit, aided by higher deliveries of equipment for planes such as the Boeing 787.

Net profit fell to USD$158 million in the fiscal third quarter ended June 30, from USD$164 million a year earlier.

Total sales rose 12 percent to USD$1.26 billion, aided by the acquisition of the ARINC information management business.

Revenue at the commercial systems unit of Rockwell Collins, which sells to Boeing and Airbus, rose 5.8 percent to USD$583 million. Government system sales fell 6 percent to USD$535 million.

Rockwell Collins is beefing up its exposure to commercial markets as US defence spending wanes. Commercial revenues stand to grow because of production of newer aircraft such as the Boeing 787 and Airbus A350.

The company last year bought ARINC, a provider of systems that help airline pilots communicate, and has said that purchase will enable it to bolster aviation information management services. It formed a new segment for such services that had USD$146 million in sales in the just-completed quarter.

In recent years, Rockwell Collins has exited some sectors of defence. On Tuesday, it said it was selling a satellite communications business formerly known as Datapath that mainly caters to military customers.