[Avionics Magazine 01-20-2017] Rockwell Collins saw sales total $1.2 billion in the first quarter of fiscal year 2017, the company says. This number shows a 2% increase from the first quarter of fiscal year 2016, and aligns with company projections.
Rockwell saw an increase in original equipment sales, which the company attributes to the demand in Airbus A350 support. Photo: Airbus
“First quarter sales were as anticipated with solid growth in our Government Systems and Information Management Services segments as well as a decline in Commercial Systems sales due to headwinds from lower business jet and aftermarket sales,” says Kelly Ortber, Rockwell Collins chairman, president and CEO. “As a result, we are reaffirming our financial guidance for the full year."
Rockwell Collins also reported that it is making progress with the pending acquisition of B/E Aerospace. Next steps include shareholder and regulatory approvals, which the company expects to complete in the coming months.
There was a noted increase in original equipment sales during the first quarter of fiscal year 2017, which Rockwell Collins attributes to the demand in Airbus A350 support and Bombardier CSeries production rate increases, among other causes. Aftermarket sales, however, saw a decrease. The company notes lower regulatory mandate sales, lower spares provisioning and lower head-up display (HUD) retrofit sales to China as causes. In terms of military sales, avionics increased due to higher simulation and training program revenues and higher fixed-wing platform revenues, Rockwell Collins says.
On the other hand, communication and navigation sales decreased. This was caused by lower communication revenues that were partially offset by higher datalink program sales. Operating earnings and operating margin saw an increase in the first quarter, due to higher sales volume and cost savings initiatives, the company says. Both information management services (IMS) sales and operating earnings saw increases.
Rockwell Collins also reports that primarily due to higher income tax payments, cash used for operating activities from continuing operations saw a $10 million increase from the first quarter of fiscal year 2016. The higher income tax payments were partially offset by setting higher consumer prices.