50 SKY SHADES - World aviation news

Rockwell Collins sees defense market uptick, small 777 impact

Download: Printable PDF Date: 21 Jan 2017 13:12 category:
Publisher:
Rockwell Collins sees defense market uptick, small 777 impact - Manufacturer publisher
Krista Kuznecova
Aircraft: Airplanes
Source: Reuters

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.



Loading comments for Rockwell Collins sees defense market uptick, small 777 impact...


Recommended

St Maarten, St Croix moving forward with airport reconstruction efforts

By Aviation industry analyst Seth Miller Nearly six months after parts of the Caribbean were ravaged by Hurricanes Irma & Maria the situation remains far from normal. Or perhaps it should simpl...

Bruno Even est nommé CEO d’Airbus Helicopters

Airbus SE (stock exchange symbol: AIR) has appointed Bruno Even, 49, Chief Executive Officer (CEO) of Airbus Helicopters, effective 1 April 2018. He will report to Airbus CEO Tom Enders and join the c...

Main rotor blades serial design successfully tested on P2!

SH09 second prototype, P2, has been flying with new main rotor blades that incorporate enhancements to the blade structure and surface finish.  This latest standard, designed for the serie...

Kinshasa joins flydubai’s growing network in Africa

flydubai becomes the first UAE carrier to operate flights to N'djili Airport (also known as Kinshasa International Airport) Dubai-based carrier to start operating daily flights to the Congolese...