(Corrects first and fourth paragraphs to say that $5.44 a share
is an analysts' earnings estimate, not company's prior forecast)
April 21 Aircraft component maker Rockwell
Collins Inc raised its fiscal-year revenue forecast but
gave a lower-than-expected profit outlook as it incorporated the
acquisition of aircraft interiors maker B/E Aerospace into its
Rockwell said it expected revenue of $6.7 billion to $6.8
billion for the year ending on Sept. 30 to reflect B/E
Aerospace's results. It had previously forecast $5.3 billion to
The company completed the B/E Aerospace acquisition last
week and said on Friday that the business would operate as a new
segment within Rockwell Collins.
Rockwell gave a profit forecast of $4.50 to $4.70 a share,
reflecting the B/E acquisition. That compares with the analysts'
consensus estimate of $5.44, according to Vertical Research
Partners analyst Rob Stallard. The company said operating
margins would fall one or two percentage points from the prior
forecast of 21 percent.
The adjustments were in line with analysts' expectations.
Stallard said he had anticipated about 90 cents of dilution to
per-share earnings this year from the deal and that Rockwell
Collins' forecast "is pretty close to this at 80 cents to 85
Rockwell shares were up about 0.6 percent at $100.18 in
light premarket trading.
The company benefited from higher sales at its government
systems and information management services units. But sales at
its commercial systems unit fell 2.8 percent due to lower
business jet production.
Net income fell to $168 million, or $1.27 per share, in the
second quarter ended on March 31 from $171 million, or $1.29 per
share, a year earlier.
Revenue rose 2.4 percent to $1.34 billion.
Analysts on average were expecting a profit of $1.30 per
share and revenue of $1.33 billion, according to Thomson Reuters
(Reporting by Alwyn Scott in New York and Arunima Banerjee in
Bengaluru; Editing by Shounak Dasgupta and Lisa Von Ahn)