Rockwell Collins second quarter 2014 sales increase 12%

Rockwell Collins reported total sales for the second quarter of fiscal year 2014 were $1.27bn, an increase of 12% from the same period in 2013 primarily due to the acquisition of ARINC. Total segment operating earnings for the second quarter of fiscal year 2014 were $254m, an increase of $25m, or 11%, from the same period a year ago. Second quarter fiscal year 2014 earnings per share from continuing operations were $1.07 and net income was $147m compared to earnings per share from continuing operations of $1.17 and net income of $161m in the second quarter of last year. Prior year net income included a $31m benefit from the retroactive reinstatement of the Federal Research & Development Tax Credit, which expired on December 31, 2013. ARINC, which was acquired on December 23, 2013, contributed $137m of sales and $17m of operating earnings to the second quarter of 2014. Rockwell Collins expects the ARINC portion of Information Management Services’ fiscal year 2014 operating margin to be in the range of 11% to 12%, (from 9% to 10%), due primarily to lower than previously estimated intangible asset amortization expense.