WASHINGTON (dpa-AFX) - Communications and aviation electronics maker Rockwell Collins Inc. (COL) on Friday reported a profit for the second quarter that was flat with last year, while revenues declined 3 percent.
The company also said that chairman and CEO Clay Jones will retire as CEO effective July 31, nearly 34 years after joining the company. President Kelly Ortberg is expected to succeed Jones as CEO, while Jones will remain on the company's board as non-executive chairman.
Cedar Rapids, Iowa-based Rockwell Collins' second-quarter net income was $161 million, the same as in the year-ago period. However, earnings per share increased to $1.17 from $1.09 in the prior-year period, reflecting lower share count due to the impact of the company's share repurchase program.
Adjusted net income for the quarter was $142 million or $1.04 per share, compared to $141 million or $0.95 per share in the same period last year. On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $1.17 per share. Analysts' estimates typically exclude special items.
Total sales for the quarter declined 3 percent to $1.13 billion from $1.16 billion in the year-ago period. Analysts had a consensus revenue estimate of $1.13 billion.
Sales at commercial systems, which provides aviation electronics systems, products and services to regional aircraft makers and airlines worldwide, grew 4 percent from last year to $553 million.
Meanwhile, sales at government systems, which provides communication and electronic systems, products and services to the U.S. Department of Defense, state and local governments and other government agencies, declined 8 percent to $578 million.
Looking ahead to fiscal 2013, Rockwell Collins maintained its forecast for earnings in a range of $4.45 to $4.65 per share and total sales between $4.6 billion and $4.7 billion. Analysts expect the company to earn $4.60 per share for the year on revenue of $4.65 billion.
Jones said, 'Fortunately, we included the impacts of sequestration in our original fiscal year guidance and, while the full impact is not yet known, our performance to date has allowed us to increase the revenue outlook for Government Systems. With the expected commercial revenue growth in the second half of the year, I have growing confidence in our ability to meet or exceed guidance projections.'
Commenting on his decision to retire as CEO, Jones said that the decision was made as part of a carefully orchestrated succession planning process that has been implemented over the past several years.
Jones, aged 64, joined Rockwell International in 1979 after serving as a fighter pilot in the U.S. Air Force. He was appointed president of Rockwell Collins in January 1999 and became CEO in June 2001 after leading the company through its initial public offering.
Jones assumed the role of chairman in 2002. During his distinguished career, he grew Rockwell Collins from $2.5 billion in annual revenues to become a nearly $5 billion company, while increasing total shareholder value by more than 200 percent.
Ortberg, aged 52, was appointed president of Rockwell Collins in September 2012. Prior to that, he served as executive vice president and chief operating officer of Government Systems, where he helped lead major program wins, including capturing avionics business on the KC-46A, KC-10 and the Embraer KC-390.
He also has served as executive vice president and COO of Commercial Systems, during which time he oversaw the company's development programs for the Boeing 787, Airbus A350 and Bombardier C-Series. Additionally, he led the launch of the company's Pro Line Fusion integrated avionics system, which has been selected for more than 15 aircraft platforms since its introduction in 2007. He joined the company in 1987.
In Friday's regular session, COL is trading at $60.60, up $0.92 or 1.54 percent on a volume of 54,798 shares.
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