Rockwell Collins updates 2009 and 2010 forecast

Rockwell Collins updated (17-Sep-2009) its FY2009 guidance to narrow the expected range of earnings per share from USD3.70-USD3.90 to USD3.70-USD3.75. The company anticipates that FY2009 revenues will be approximately USD4.5 billion (updated from USD4.55 billion), and that total segment operating margins will be between 21% to 21.5% (updated from 21%). For FY2010, the company anticipates revenue between USD4.6 billion and USD4.8 billion, earnings per share in the range of USD3.35 to USD3.55, and cash flow from operations of USD600 million to USD700 million. Total segment operating margin is forecast in the range of 18.5% to 19.5%.

• Commercial Systems FY2010 forecast:
  • Revenue: -7%;
    • Low double-digit decline in sales related to aircraft OEMs with greater declines in the first half of the year and moderating declines in the second half;
    • Low single-digit growth in aftermarket sales with declines in the first half of the year offset by growth in the second half;
    • Approximately 40% decline in sales related to widebody IFE products and systems.