Rockwell Collins posts 2nd quarter fiscal 2016 financial results

Rockwell Collins reported second quarter fiscal year 2016 earnings per share from continuing operations increased 7% to $1.30 compared to $1.22 in the prior year. Total sales in the second quarter of fiscal year 2016 were US$1.31bn, a 2% decrease from the same period in fiscal year 2015. Total segment operating margins remained steady at 20.7%. Original equipment sales decreased 5% due to lower business aircraft OEM production rates, unfavorable airline selectable equipment mix, and lower Airbus A330 production rates. These decreases were partially offset by higher customer-funded development program revenues, higher product deliveries in support of the Airbus A350 and Boeing 787 production ramps, and higher product deliveries for the Bombardier CSeries program in support of entry into service. Aftermarket sales increased 6% due to higher business jet avionics retrofit and mandate revenues as well as inorganic sales primarily from the acquisition of International Communications Group (ICG). Operating earnings and operating margin decreased from the prior year primarily due to sales mix as lower margin customer-funded development sales increased and higher margin business jet OEM sales decreased. In addition, SG&A costs increased from higher inorganic costs from the acquisitions of ICG and Pacific Avionics. These items were partially offset by lower company-funded research and development expense and cost savings initiatives from previously announced restructuring plans.