Rockwell Collins lifts FY sales outlook to reflect B/E Aerospace deal – Nasdaq

Reuters
(Adds results’ detail, conference call comments; updates shares) April 21 (Reuters) – Rockwell Collins Inc’s <COL.N> second-quarter revenue beat analysts’ estimates and the aircraft components maker raised its full-year revenue forecast to reflect the impact of its recently closed acquisition of aircraft interiors maker B/E Aerospace. Rockwell’s shares rose as much as 5 percent to a record high $104.54 on Friday. The company closed the B/E Aerospace acquisition last week and said at the time it would try to sell more aircraft seats and interiors directly to plane makers, rather than to airlines, which typically are responsible for purchases. [nL1N1HL1G4] Rockwell said on Friday it expected revenue of $6.7 billion to $6.8 billion for the year ending Sept. 30. In January it had forecast revenue of $5.3 billion to $5.4 billion. Analysts expect full-year revenue of $6.75 billion, according to Thomson Reuters I/B/E/S. Rockwell gave a full-year profit forecast of $4.50 to $4.70 per share, reflecting the B/E acquisition. That compares with analysts’ consensus estimate of $5.44, according to Vertical Research Partners analyst Rob Stallard. Stallard said he had anticipated the B/E deal would dilute Rockwell’s earnings by about 90 cents per share this year and that the company’s forecast “is pretty close to this at 80 cents to 85 cents.” Rockwell said operating margins would fall one or two percentage points from its prior forecast of 21 percent. In the second quarter, Rockwell’s net income fell to $168 million, or $1.27 per share, from $171 million, or $1.29 per share, a year earlier. [nBw3vhskQa] The Cedar Rapids, Iowa-based company said revenue increased 2.4 percent to $1.34 billion in the quarter ended March 31. Analysts on average were expecting revenue of $1.33 billion. Sales at Rockwell’s government systems unit increased 5 percent to $565 million, accounting for

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