Signs of Commercial Stabilization Predicted in 2010 Military Helps Offset Commercial Losses

Cedar Rapids, Iowa-based Rockwell Collins reports that its fourth quarter 2009 net income slid 26 percent—from $182 million in 2008 to $134 million—from the same period last year.

Overall, the aerospace company reported a fiscal year 2009 decrease of six percent in sales, from $4.77 billion last year to $4.47 billion. Net income for the full year came in 12 percent lower at $594 million, down 12 percent from FY2008’s $678 million.

Rockwell Collins says that losses in the Commercial Systems unit—with sales down 30 percent for the quarter—were partially offset by gains in its Government Systems division, which saw an increase of 17 percent over 4Q08.

President & CEO Clay Jones says that despite the challenging economic conditions, the company has benefited from diversity in serving various markets. “Although our Commercial Systems business suffered from a decline in revenues and profitability due to market circumstances beyond our control, we were able to partially offset these impacts through the strength of our Government Systems business, which realized record levels of sales and profitability.” That balance allowed the company to generate high levels of operational cash flow, enabling Rockwell Collins to continue investing in “acquisition and organic growth opportunities,” he added.

Despite the lower numbers in 2009, Jones said “we are beginning to see signs of stabilization in our commercial markets” going into 2010. The first quarter of 2010 “will be the low mark of this cycle,” he predicted.

The impact of the global financial meltdown on the aviation sector is the subject of an Aviation Today webinar, “Coping With The Global Credit Crunch,” set for Thursday, Nov. 19 at 11:00 a.m. EST.

A panel of speakers will include Paul Leighton, CEO of Aircraft Value Analysis Co. and editor-in-chief of Aircraft Value News; Joe Leader, president of the Air Taxi Association; Jack Demeis, CEO of Continuum Applied Technology; and Oscar Garcia, chairman of Interflight Consulting.

For more information and to register, visit:  www.aviationtoday.com/webinars/2009-1119.html