New book by Larry Connors Click here Improve your trading - See how
The aviation electronics company reported net income of $134 million, or 84 cents per share, compared to $182 million or $1.13 for the fourth quarter of 2008.
The downturn in commercial aviation caused by the recession told most of the story for Rockwell Collins' year. Full-year earnings per share fell 10 percent, to $3.73.
Chairman and CEO Clay Jones told Wall Street analysts the cur rent quarter is expected to be the nadir of the downturn for Rockwell Collins, which expects improvement this fiscal year and beyond.
"While 2010 will be a challenging year, it's feeling more and more like we're at a pivot point, and I believe we'll see sequential and substantial improvement as we move through the year and beyond," Jones said.
A 17 percent improvement in fourth-quarter sales by the company's Government Systems division, which sells to defense markets, was not enough to offset a 30 percent decline in sales by the company's Commercial Systems division, which sells mainly to airlines and aircraft manufacturers.
Operating earnings in Commercial Systems fell more than half, from $144 million in the fourth quarter of 2008 to $71 million in the fourth quarter of this year.
Jones said Rockwell Collins believes 800 planes have been taken out of the global airline fleet because of the recession, and 200 to 250 more will be cut during the winter, which will dampen demand for aftermarket equipment in the early part of 2010. The demand is expected to return later in the year as airlines put more planes back into service, with some pent-up demand from deferred upgrades and retrofits.
Jones emphasized that the company's balance of government and commercial business has helped the company avoid the worst effects of the recession.
For the year, the Government Systems division reported a $116 million improvement in operating earnings, helping to offset a $207 million drop in operating earnings on the commercial side.
Revenues for the year were down only 6 percent. Rockwell Collins expects earnings per share for 2010 of $3.35 to $3.55, down from $3.73 this fiscal year. It expects a mod est increase in sales from $4.47 billion in 2009 to $4.6 billion to $4.8 billion in fiscal 2010.
Fourth quarter results included a one-time charge against earnings of 9 cents per share, related mainly to the closing of the Government Systems operations in San Jose, Calif. The work will be redistributed to locations in other parts of the country where operating costs are lower.
Rockwell Collins shares fell $1.54, per share, or 3 percent, at $49.24 Tuesday on the New York Stock Exchange.
-- Contact the writer: (319) 398-8317 or david. dewitte@gazcomm.com
To see more of The Gazette, or to subscribe to the newspaper, go to http://www.gazetteonline.com. Copyright (c) 2009, The Gazette, Cedar Rapids, Iowa Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
