Rockwell Collins (COL), a leading supplier of communications and avionics equipment, said its earnings increased in the third quarter aided by broad-based revenue growth. The results, however, missed analysts’ forecast.
Earnings moved up to $275 million or $1.66 per share from $179 million or $1.12 per share in the third quarter of 2017. Adjusted earnings, excluding special items, rose to $1.73 per share from $1.64 per share last year.
The company’s sales increased 5% annually to $2.21 billion during the quarter, aided by an impressive performance by all business segments. Driving the top-line growth, Government Systems sales climbed 13, and Information Management Services sales advanced 7%. Both Interior Systems and Commercial Systems registered 2% sales growth.
“In addition to the solid business performance for the quarter, we have spent significant energy preparing for the upcoming merger with United Technologies Corporation. I’m confident that those efforts, along with strong market conditions, will allow us to hit the ground running at the anticipated close,” said Rockwell Collins CEO Kelly Ortberg.
Sales rose 5% annually, aided by impressive performance by all business segments
The Cedar Rapids, Iowa-based company clinched a logistics contract with the Australian Army during the third quarter to provide extended avionics support for the latter’s helicopter fleet. It also received maintenance contracts from the US Air Force to support air traffic management components on military tanks.
Meanwhile, United Technologies’ $30-billion acquisition of Rockwell is expected to close in the third quarter, after a protracted delay caused by regulatory bottlenecks in China and the US. United Technologies will be adding Rockwell into its aerospace business, creating the world’s largest aviation equipment company. The combined entity is expected to generate annual sales of about $23 billion.
Rockwell Collins shares gained 26% in the past 12 months and 2% since the beginning of the year. The stock rose modestly in premarket trading Friday after the earnings release.