Aviation electronics maker Rockwell Collins Inc's defense business is "really busy right now," reflecting a new emphasis on defense spending, Chief Executive Officer Kelly Ortberg said on Friday.
The Cedar Rapids, Iowa-based company is bidding on more defense program contracts "and the scope of the programs is larger," Ortberg said on a conference call with analysts after Rockwell reported a 10 percent rise in its quarterly profit.
U.S. defense spending had been slowed by a temporary budget agreement, known as a continuing resolution, that keeps current spending levels in place, Ortberg said.
He warned that another continuing resolution "would eat into" Rockwell's 2017 revenue forecast, but said he expects a new budget deal would be reached soon.
Rockwell downplayed a planned cut in output of Boeing Co 777 jetliners, saying the 40 percent reduction this year would have minimal effect on earnings.
"It did come a little earlier than we expected," Ortberg said, "but it's not overly material."
Rockwell's shares were up 2.3 percent at $91.23 in late afternoon trading.
Rockwell reported a profit of $1.10 a share for the fiscal first quarter ended Dec. 31. That was below the $1.14 a share that analysts on average had expected, according to Thomson Reuters I/B/E/S.
The figure included costs from Rockwell's acquisition of seat maker B/E Aerospace Inc , which Rockwell said would close in the spring.
Excluding acquisition costs, the company earned $1.20 a share, up 17 percent from a year ago.
Guardian Flight has recently strengthened the reach and focus of its air medical transport footprints in Alaska, Hawaii, and Utah with additional dedicated and medically equipped fixed wing aircr...
The International Air Transport Association (IATA) announced global passenger traffic results for September showing that demand (measured in revenue passenger kilometers, or RPKs) rose 5.5% compared t...
CAE has agreed to acquire Bombardier’s Business Aircraft Training (BAT) business for an enterprise value of US$645 million, expanding its ability to address the training market for customers ope...
Frequentis to pursue defence information and communications opportunities with MENA Aerospace in Bahrain. Strategic partners InterTec and IJM also attending, with further new agreements...