Rockwell Collins: Net Income Up 20%,
Beats Wall St. Consensus -- Stock Up 121.6%
04/27/2004
Today Rockwell Collins announced that their net income increased
by 20% and earnings increased 18%. This beat Wall Street's
expectations. After we gave a buy signal for Rockwell Collins,
the company's stock has risen 121.6%. Below is an excerpt
from the company's earnings statement:
CEDAR RAPIDS, Iowa (April 27, 2004) - Rockwell
Collins, Inc. (NYSE: COL) today reported earnings per share
of 39 cents for the second quarter of fiscal year 2004 ended
March 31, 2004, an increase of 6 cents or 18% from the 33
cents reported for the same period last year. Net income increased
20% to $71 million from the $59 million reported for the second
quarter last year.
Sales for the second quarter of fiscal year
2004 were $719 million, an increase of $101 million, or 16%
from last year's sales of $618 million. Cash provided by operating
activities for the first six months of fiscal year 2004 was
$34 million including a $125 million voluntary contribution
to the company's qualified pension plans. Excluding the impact
of this pension contribution, cash generated by operating
activities would have been $159 million, an increase of $31
million from the $128 million reported for the first six months
last year.
"Another quarter of increased aftermarket
sales volume in our Commercial Systems business is a sign
that the recovery in the commercial airline and business jet
markets is beginning to take hold," said Rockwell Collins
Chairman, President and Chief Executive Officer Clay Jones.
"This improvement, combined with the continued strong
performance of our Government Systems business and enterprise-wide
success on cost containment and productivity improvement initiatives,
has once again allowed us to deliver outstanding financial
results."
Fiscal Year 2004 Outlook
For fiscal year 2004, the company still
anticipates revenues to be in the range of $2.80 billion to
$2.85 billion. Earnings per share are now anticipated to be
in the range of $1.55 to $1.60, which is at the high end of
our previous earnings per share range of $1.50 to $1.60.
The Government Systems business operating
margins are projected to decrease from the 19.2% posted for
the first six months of fiscal year 2004 to a range of 17%
to 18% for the fiscal year due to an expected increase in
lower margin revenues from newly acquired NLX and an expected
increase in the proportion of Government Systems sales to
be derived from lower margin development contracts, including
JTRS, JSF, E6-B Block I Modifications and Future Combat Systems.
The Commercial Systems business operating margins are projected
to be in the range of 13% to 14% for fiscal year 2004.
Cash provided from operating activities
for the fiscal year are still expected to be in the range
of $225 million to $275 million including the $125 million
voluntary contribution to our qualified pension plans in October
2003.
Rockwell Collins is a leader in the design,
production and support of communications and aviation electronics
solutions for commercial and government customers worldwide.
In January 2004, Forbes magazine selected Rockwell Collins
as the best managed aerospace & defense company in America.
Additional information is available at www.rockwellcollins.com.
This press release contains statements,
including certain projections and business trends, that are
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially
from those projected as a result of certain risks and uncertainties,
including but not limited to the timing related to the recovery
of the commercial airline industry such as airline passenger
traffic and profitability; the health of the global economy
as well as the commercial aerospace industry; a reduction
of domestic and foreign government spending, budgetary and
trade policies; economic and political changes in international
markets where we compete; demand for and market acceptance
of new and existing products and services; performance of
our products and services; potential cancellation or termination
of contracts by our customers; delay of orders or changes
in procurement practices by our customers; customer bankruptcy;
labor work stoppages; material shortages; the risks inherent
in fixed price contracts; recruitment and retention of qualified
personnel; performance of our major suppliers and subcontractors;
our ability to successfully execute to our internal performance
plans; achieving our planned effective tax rates; favorable
outcomes of certain customer procurements and congressional
approvals; changes to new aircraft build rates; product reliability;
successful execution of our acquisition, strategic and integration
plans; and the uncertainties of the outcome of litigation,
as well as other risks and uncertainties, including but not
limited to those detailed from time to time in our Securities
and Exchange Commission filings. These forward-looking statements
are made only as of the date hereof and the company assumes
no obligation to update any forward-looking statement.
SOURCE: Rockwell Collins, Inc.
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