Business & GA, Commercial, Military

Rockwell Collins Releases 2016 Guidance, Anticipates Slow Bizjet Numbers

By Juliet Van Wagenen | September 18, 2015
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[Avionics Today 09-18-2015] Rockwell Collins has announced guidance for fiscal year 2016. The company expects revenue between $5.3 billion and $5.4 billion and cash flow from operations of $700 million to $800 million. The company anticipates total segment operating margins will be at about 21 percent.

"As we look to fiscal year 2016, our guidance for our government systems, Information Management Services (IMS), and air transport businesses are all in line with our long-term outlook," said Rockwell Collins Chief Executive Officer and President, Kelly Ortberg. "However, this is not the case in business aviation where we continue to experience weak market conditions. At this time, we don’t expect to see these conditions improve significantly in the next year so we are resetting our near-term expectations for that business.”

Ortberg noted that, alongside the previously announced production rate reduction on the Global 5000/6000 aircraft, the guidance incorporates additional rate reductions in both the mid-size and light segments of the business jet market. As a result, Ortberg now expects the overall business and regional jet Original Equipment Manufacturer (OEM) sales to “decrease low-double digits from fiscal year 2015.” Rockwell Collins expect business and regional jet aftermarket sales to continue growing at a fairly modest level, however, similar to what the company has seen in fiscal year 2015.

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