Rockwell Collins’ third-quarter net income rose 5 percent, but fell just short of Wall Street expectations after one of its big customers sought bankruptcy protection.
For the quarter ended June 30, the aviation and communications company earned $166 million, or $1.14 per share, up from $158 million, or $1.01 per share, in the same quarter last year.
The recent quarter’s results are based on about 145 million outstanding shares, while those of the year-ago period are based on about 155.9 million.
Sales edged up about a percent to $1.21 billion from $1.19 billion, as government systems sales rose 2 percent to $679 million and commercial systems sales edged up 1 percent to $526 million.
Analysts, on average, expected a profit of $1.15 per share on $1.23 billion in revenue, according to a FactSet poll.
Rockwell, based in Cedar Rapids, Iowa, said that a lower income tax rate boosted its results by 5 cents per share, while the effects of the recent bankruptcy protection filing at Hawker Beechcraft, a key customer, reduced its profit by 6 cents per share.
The company warned that the slowdown in the global economy’s recovery and Hawker Beechcraft’s situation continue to affect its expectations for business aviation growth.
As a result, the company lowered the high end of its previous 2012 profit prediction by 10 cents, resulting in a new range of $4.40 to $4.50 per share. The company also cut its full-year sales prediction to about $4.8 billion from about $4.85 billion.
Analysts polled by FactSet expect a profit of $4.41 per share on $4.84 billion in sales. AP