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Aviation News Item: 01068
2nd Aug 2009
Rockwell Collins Earnings Down in FY 2009 Q3
Source: fly-corporate.com
 Rockwell Collins, Inc, which develops and deploys communication and aviation electronic solutions, has reported net income of $145 million for the fiscal year 2009 third quarter ended June 30, 2009, a decrease of $29 million, or 17%, from fiscal year 2008 third quarter net income of $174 million.
Third quarter fiscal year 2009 sales decreased $110 million, or 9%, to $1.084 billion compared to sales of $1.194 billion a year ago. Incremental sales from the acquisitions of DataPath, Inc. and SEOS Group Ltd. contributed $28 million of revenue growth. The organic revenue decline of $138 million resulted from continued market weakness in commercial aerospace.
"During this time of volatile market conditions we are very focused on effectively managing our business" said Rockwell Collins Chairman, President and Chief Executive Officer Clay Jones. "This was evidenced in our ability to increase cash flow from operations by 23% over last year and to generate total segment operating margins of 21.5% in spite of the overall revenue decline."
Commercial Systems
Rockwell Collins Commercial Systems, which provides aviation electronics systems, products and services to air transport, business and regional aircraft manufacturers and airlines, achieved third quarter sales of $433 million, a decrease of $154 million, or 26%, compared to sales of $587 million reported for the same period last year.
Sales related to aircraft OEMs decreased $114 million, or 35%, to $211 million, partially attributed to reduced production rates at business jet OEMs. Aftermarket sales decreased $40 million, or 17%, to $199 million due primarily to lower avionics service and support revenues, reduced Boeing 787 simulator avionics sales, and lower retrofit hardware sales. Wide-body in-flight entertainment products and systems sales were flat at $23 million compared to the prior year period.
Commercial Systems' third quarter operating earnings decreased 46% to $75 million, resulting in an operating margin of 17.3%, compared to operating earnings of $139 million, or an operating margin of 23.7%, for the same period a year ago. The decrease in operating earnings was due primarily to lower sales volumes, partially offset by lower employee incentive compensation and research and development costs, as well as reduced employee headcount and other cost saving initiatives.
Click here to read the full FY 2009 Q3 report.
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