Rockwell Collins, Inc. (NYSE: COL) today reported total sales for the second quarter of fiscal year 2014 were $1.27 billion, an increase of 12% from the same period in 2013 primarily due to the acquisition of ARINC. Total segment operating earnings for the second quarter of fiscal year 2014 were $254 million, an increase of $25 million, or 11%, from the same period a year ago. Second quarter fiscal year 2014 earnings per share from continuing operations were $1.07 and net income was $147 million compared to earnings per share from continuing operations of $1.17 and net income of $161 million in the second quarter of last year. Prior year net income included a $31 million, or $0.22 per share, benefit from the retroactive reinstatement of the Federal Research & Development Tax Credit, which expired on December 31, 2013.
ARINC, which was acquired on December 23, 2013, contributed $137 million of sales and $17 million of operating earnings to the second quarter of 2014. Rockwell Collins expects the ARINC portion of Information Management Services' fiscal year 2014 operating margin to be in the range of 11% to 12%, (from 9% to 10%), due primarily to lower than previously estimated intangible asset amortization expense.
“These strong second quarter financial results, including 12% sales growth and 20% total segment operating margins, support our plan to accelerate growth and increase shareowner value,” said Rockwell Collins Chief Executive Officer, Kelly Ortberg. „Share gains from new OEM programs, expanding international sales, and growth in our new Information Management Services business more than offset anticipated declines in business aviation and defense. As we look forward, we expect to convert our sales growth into even higher levels of earnings and cash flow generation as we leverage our proven operating model.”
Following is a discussion of fiscal year 2014 second quarter sales and earnings for each business segment. Certain amounts previously included in the Commercial Systems segment have been reclassified to the newly created Information Management Services segment. See the supplemental schedule included in the press release filed on Form 8-K dated January 21, 2014 for a reconciliation of amounts reclassified.
Source / Author: Rockwell Collins / full report