Rockwell Collins reported sales for the first quarter of fiscal year 2017 of US$1.2bn, a 2% increase from the same period in fiscal year 2016. First quarter fiscal year 2017 earnings per share from continuing operations increased to US$1.10 compared to US$1.00 in the prior year. Earnings per share from continuing operations for the first quarter of fiscal year 2017 includes 10 cents of expenses related to the pending acquisition of B/E Aerospace. Earnings per share from continuing operations in the first quarter of fiscal year 2016 included a 21% restructuring and asset impairment charge partially offset by an 18 cent benefit from the retroactive reinstatement of the Federal Research & Development Tax Credit. Excluding these items, adjusted earnings per share increased 17% to US$1.20 compared to US$1.03 in the prior year.
Commercial Systems, which provides aviation electronics systems, products and services to air transport, business and regional aircraft manufacturers and airlines worldwide, achieved 2017 first quarter results as summarized below:
– Original equipment sales increased 2% due to higher product deliveries in support of the Airbus A350 and Bombardier CSeries production rate increases, favorable customer timing for airline selectable equipment, and higher customer-funded development program revenues, partially offset by lower business aircraft OEM production rates.
– Aftermarket sales decreased 5% due to lower regulatory mandate sales, lower spares provisioning, and lower head-up display retrofit sales to customers in China.
– Commercial Systems operating earnings were flat and operating margin improved 60 basis points over the prior year. Operating margin was favorably impacted by lower research and development expense and cost saving initiatives, partially offset by a US$13m decrease in sales and sales mix, as lower margin customer-funded development revenues increased and higher margin business jet OEM sales decreased.
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