Rockwell Collins reports second quarter financial results

Rockwell Collins has reported sales for the second quarter of fiscal year 2017 of US$1.34bn, a 2% increase from the same period in fiscal year 2016. Second quarter fiscal year 2017 earnings per share from continuing operations was $1.27 compared to $1.30 in the prior year. Earnings per share for the second quarter of fiscal year 2017 includes 7 cents of B/E Aerospace acquisition-related expenses. Total segment operating margins were 21.0% for the second quarter of fiscal year 2017, a 30 basis point improvement over the same period in fiscal year 2016. On April 13, 2017 the company completed the acquisition of B/E Aerospace, a leading manufacturer of aircraft cabin interior products and services, for US$8.6bn in total consideration. B/E Aerospace will operate as a new Interior Systems segment within Rockwell Collins. The company’s updated full year fiscal 2017 financial guidance adjusted to include the acquisition of B/E Aerospace is as follows:
Sales are now expected to be in the range of US$6.7bn to US$6.8bn (from US$5.3bn to US$5.4bn). Interior Systems (formerly B/E Aerospace) sales are estimated to be about US$1.4bn. GAAP earnings per share are expected to be in the range of US$4.50 to US$4.70. Earnings per share adjusted for B/E Aerospace acquisition-related expenses and total combined company acquisition-related intangible asset amortization is expected to be in the range of US$5.95 to US$6.15. Free cash flow is now expected to be in the range of US$650m to US$750m (from US$600m to US$700m).