CEDAR RAPIDS, Iowa (AP) — Aviation and military electronics maker Rockwell Collins Inc. reported flat fiscal second-quarter net income, as a hefty tax benefit offset a drop in sales.
Also on Friday, Rockwell Collins said that its CEO plans to retire this summer and will be replaced by the company's president.
For the quarter ended March 31, Rockwell Collins earned $161 million, or $1.17 per share, compared with $161 million, or $1.09 per share, a year ago. The recent quarter's results are based on 137.8 million outstanding shares, while those of the year ago are based on 147.6 million.
Excluding the effects of a tax benefit and certain compensation costs, the company said it posted an adjusted profit of $1.04 for the recent quarter. Analysts, on average, expected a profit of $1.17 per share, according to FactSet.
Revenue fell 3 percent to $1.13 billion from $1.16 billion, matching analysts' expectations of $1.13 billion.
Commercial systems sales increased 4 percent to $553 million on higher sales to aircraft manufacturers and aftermarket companies, while government systems sales dropped 8 percent to $578 million on lower demand for its avionics and navigation products.
The company said it still expects to post a 2013 profit of $4.45 to $4.65 per share on $4.6 billion to $4.7 billion in revenue. Analysts expect earnings of $4.61 per share on $4.66 billion in revenue.
The retirement of Clay Jones, who also serves as chairman, is effective July 31 and comes after nearly 34 years with the company. Rockwell Collins President Kelly Ortberg, 52, is expected to succeed Jones as CEO at that time.
Ortberg became the company's president in September 2012. He previously served as executive vice president and chief operating officer of its government systems business.
Jones, 64, will remain on the company's board as non-executive chairman.
Its shares finished at $59.68 on Thursday.