Rockwell Collins Reports Earnings for the First Time as a Public Company; Sales Increase 16 Percent in Third Quarter.Business Editors CEDAR RAPIDS Cedar Rapids, city (1990 pop. 108,751), seat of Linn co., E central Iowa, on the Cedar River; inc. as a city 1856. The second largest city in Iowa, it is named for the surging rapids in the river. , Iowa--(BUSINESS WIRE)--July 25, 2001 Rockwell Collins Rockwell Collins, Inc. (NYSE: COL) is a large United States-based international company headquartered in Cedar Rapids, Iowa, primarily providing aviation and information technology systems, solutions, and services to governmental agencies and aircraft manufacturers. , Inc. (NYSE NYSE See: New York Stock Exchange :COL col (kol) a depression in the interdental tissues just below the interproximal contact area, connecting the buccal and lingual papillae. col n. ) today reported record sales of $727 million for its third quarter ended June June: see month. 30, 2001. Sales increased $100 million, or 16 percent, over the same period a year ago. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income for the third quarter increased to $67 million, or 36 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared to $66 million, or 35 cents per share, in last year's third quarter, consistent with the company's recent guidance. Rockwell Collins, a leading provider of aviation electronics and airborne airborne /air·borne/ (ar´born) suspended in, transported by, or spread by air. airborne, adj carried through the air. In health care settings, viruses or bacteria may become airborne, e.g. and mobile communication systems, became an independent and publicly-traded company on June 29, 2001 following its spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. from Rockwell International Rockwell International was the ultimate incarnation of a series of companies under the sphere of influence of Willard Rockwell, who had made his fortune after the invention and successful launch of a new bearing system for truck axles in 1919. Corporation (NYSE:ROK). Clay Jones, president and chief executive officer, said, "Both our Commercial Systems and Government Systems businesses delivered solid results in our third quarter. Commercial Systems had increased sales and strong operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: despite softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in the commercial aircraft market. Government Systems posted significantly higher sales and operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before , due in large measure to the contributions of our recently acquired Kaiser Aerospace and Electronics business. In addition, service revenue across the businesses rose more than 10%, as we continue to aggressively expand our service offerings." "We are well positioned to continue the profitable growth that Rockwell Collins has delivered over the past five years," Jones continued. "Despite the recent difficult economic conditions, we expect to post significant increases in both sales and earnings in our fourth quarter as compared to the same period a year ago. This performance will be fueled by increased deliveries related to certain government contracts and in-flight entertainment In-flight entertainment (IFE) refers to the entertainment available to aircraft passengers during a flight. After World War II commercial aviation flights became a daily event in which entertainment was requested by passengers to help the time pass. products. We remain confident with our estimate of full year earnings per share in the range of $1.40 to $1.45 on a pro forma basis." Following is a discussion of sales and earnings for each of Rockwell Rock·well , Norman 1894-1978. American illustrator whose works, many of which appeared on the cover of the Saturday Evening Post, offer a nostalgic, idealized view of everyday American life. Noun 1. Collins' businesses for the third quarter: Commercial Systems Commercial Systems, which provides aviation electronics and in-flight entertainment products to air transport, business and regional aircraft manufacturers and airlines worldwide, posted third quarter sales of $413 million, $17 million or 4 percent higher than last year's third quarter. The Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) Trans Com in-flight entertainment business, acquired in July July: see month. 2000, added $23 million. Excluding this acquisition, sales were down slightly, due primarily to lower sales of avionics avionics (ā'vēŏn`ĭks), electronic instruments used in air or space flight; also the design and production of such instruments. Early planes had few instruments, but as aviation and aircraft became more complex, so did instrumentation. and in-flight entertainment products into the commercial airline retrofit ret·ro·fit v. ret·ro·fit·ted or ret·ro·fit, ret·ro·fit·ting, ret·ro·fits v.tr. 1. To provide (a jet, automobile, computer, or factory, for example) with parts, devices, or equipment not in market. Commercial Systems' operating margin for the quarter was 17.2 percent, 1.2 points lower than last year's third quarter, due to the lower margin Sony Trans Com sales and higher product development spending. Government Systems Government Systems, which provides aviation electronics and other communications products to the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. government, foreign militaries and manufacturers of military aircraft, reported sales of $314 million, an increase of $83 million or 36 percent over last year's third quarter, including $60 million related to Kaiser. Excluding the effect of the Kaiser acquisition, sales for the quarter rose 10 percent over the comparable period a year ago, due principally to strong international sales. Government Systems' operating margin decreased to 15.9 percent in the third quarter compared to 17.3 percent a year ago, as we increased investment in Flight2(TM), our next generation integrated avionics architecture for the defense market. Corporate Expenses and Pro Forma Adjustments General corporate expenses are primarily costs allocated by Rockwell International for centrally provided management services, including corporate oversight
Oversight may refer to:
v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. those we would have incurred had we been an independent company for the periods presented. Our calculation of pro forma net income and earnings per share includes certain adjustments necessary to present the results of Rockwell Collins as if the spin-off transaction had occurred at the beginning of the periods presented. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share has been calculated based on Rockwell International's average outstanding shares for all periods presented. Net income for the third quarter excluding these pro forma adjustments was $68 million, compared to $69 million in the third quarter of 2000. In addition to the successful completion of our spin-off, we had the following business highlights during the quarter: -- Standard & Poor's added Rockwell Collins to the S&P 500 Index effective at the close of business on June 29, 2001. -- Airbus selected Rockwell Collins to provide the Avionics Full Duplex Ethernet (AFDX) switch for the new A380 aircraft. The AFDX switch provides the communications infrastructure to connect aircraft systems, including displays, radios and navigation sensors. This award is the first sole source selection for the new aircraft avionics suite. -- Raytheon Aircraft selected Rockwell Collins' Pro Line 21 integrated avionics system into the Hawker 800XP. Collins Pro Line avionics currently fly onboard Raytheon's Beechjet 400A and the King Air and Hawker families of aircraft. Collins Pro Line 21 is also being integrated into several new-generation business jets, and was recently certified on the Raytheon Premier I. -- Rockwell Collins was selected to provide key avionics systems to The Boeing Company as part of the U.S. Air Force C-130 Avionics Modernization Program. The contract award is estimated to be $500 million and the company will supply systems for approximately 500 USAF C-130 aircraft, with deliveries beginning in 2004 and continuing for ten years. -- Rockwell Collins, through its Kaiser subsidiary, was selected by The Boeing Company to supply the Flat Panel Color Displays for the U.S. Air Force Boeing F-15E program. A conference call to discuss these financial results will take place at 10:00 am Eastern Time on July 25. The call will be webcast and accessible via the Rockwell Collins website (www.rockwellcollins.com). This news release contains statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future results that are "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including, but not limited to, those detailed from time to time in the company's Securities and Exchange Commission filings. Rockwell Collins is a world leader in the design, production and support of communications and aviation electronics solutions for commercial and government customers worldwide. The company employs a global workforce of 17,500 people and has estimated fiscal 2001 sales of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.9 billion. Rockwell Collins common stock is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors COL. For more information, visit the Company's website (www.rockwellcollins.com).
ROCKWELL COLLINS, INC.
SALES AND EARNINGS INFORMATION
THREE MONTHS ENDED JUNE 30
(in millions, except per share amounts)
Reported Pro Forma (1)
------------ ------------
2001 2000 2001 2000
----- ----- ----- -----
Sales
Commercial Systems $ 413 $ 396 $ 413 $ 396
Government Systems 314 231 314 231
----- ----- ----- -----
Total sales $ 727 $ 627 $ 727 $ 627
===== ===== ===== =====
Segment Operating Earnings
Commercial Systems $ 71 $ 73 $ 71 $ 73
Government Systems 50 40 50 40
----- ----- ----- -----
Total segment operating earnings 121 113 121 113
Goodwill and purchase accounting items (9) (3) (9) (3)
Earnings (losses) from equity affiliates (1) 1 (1) 1
Interest expense - - (4) (5)
General corporate - net (7) (8) (5) (8)
----- ----- ----- -----
Income before income taxes 104 103 102 98
Income tax provision (36) (34) (35) (32)
----- ----- ----- -----
Net income $ 68 $ 69 $ 67 $ 66
===== ===== ===== =====
Diluted earnings per share $ .36 $ .35
===== =====
Average outstanding diluted shares (2) 186.0 189.6
===== =====
1) Pro Forma net income includes adjustments necessary to present the
Company's results as if the transaction had occurred at the
beginning of the periods presented. These adjustments include
interest expense on $300 million of commercial paper borrowing
used to fund the special payment to Rockwell International, and
income and costs for retirement benefit assets and liabilities
unrelated to the Rockwell Collins business, which were assumed in
connection with the spin-off.
2) Average outstanding diluted shares are based on Rockwell
International's common shares and common share equivalents
outstanding over the periods presented, adjusted for the
distribution ratio of one share of Rockwell Collins common stock
for every one share of Rockwell International common stock.
ROCKWELL COLLINS, INC.
SALES AND EARNINGS INFORMATION
NINE MONTHS ENDED JUNE 30
(in millions, except per share amounts)
Reported Pro Forma (1)
-------------- --------------
2001 2000 2001 2000
------ ------ ------ ------
Sales
Commercial Systems $1,209 $1,140 $1,209 $1,140
Government Systems 795 668 795 668
------ ------ ------ ------
Total sales $2,004 $1,808 $2,004 $1,808
====== ====== ====== ======
Segment Operating Earnings
Commercial Systems $ 207 $ 219 $ 207 $ 219
Government Systems 129 101 129 101
------ ------ ------ ------
Total segment operating earnings 336 320 336 320
Goodwill and purchase accounting items (30) (9) (30) (9)
Earnings (losses) from equity
affiliates 1 (2) 1 (2)
Interest expense - - (14) (15)
General corporate - net (22) (19) (17) (18)
------ ------ ------ ------
Income before income taxes 285 290 276 276
Income tax provision (98) (95) (95) (90)
------ ------ ------ ------
Net income $ 187 $ 195 $ 181 $ 186
====== ====== ====== ======
Diluted earnings per share $ .97 $ .97
====== ======
Average outstanding diluted shares (2) 185.9 192.2
====== ======
1) Pro Forma net income includes adjustments necessary to present the
Company's results as if the transaction had occurred at the
beginning of the periods presented. These adjustments include
interest expense on $300 million of commercial paper borrowing
used to fund the special payment to Rockwell International, and
income and costs for retirement benefit assets and liabilities
unrelated to the Rockwell Collins business, which were assumed in
connection with the spin-off.
2) Average outstanding diluted shares are based on Rockwell
International's common shares and common share equivalents
outstanding over the periods presented, adjusted for the
distribution ratio of one share of Rockwell Collins common stock
for every one share of Rockwell International common stock.
ROCKWELL COLLINS, INC.
SUMMARY BALANCE SHEET
(in millions)
June 30, Sept. 30,
2001 2000
------ ------
Assets
Cash $ 20 $ 20
Other current assets 1,571 1,307
Net property 483 417
Other assets 615 356
------ ------
Total Assets $2,689 $2,100
====== ======
Liabilities and Shareowners' Equity
Short-term debt $ 302 $ --
Other current liabilities 781 762
Other liabilities 446 430
Shareowners' equity 1,160 908
------ ------
Total liabilities and shareowners' equity $2,689 $2,100
====== ======
ROCKWELL COLLINS, INC.
CONDENSED CASH FLOW INFORMATION
NINE MONTHS ENDED JUNE 30, 2001
(in millions)
Operating Activities:
Net income $ 187
Adjustments to arrive at cash provided by
Operating activities:
Depreciation and amortization 102
Receivables (36)
Inventories (109)
Accounts payable (46)
Compensation and benefits (22)
Other (67)
----------
Cash provided by operating activities 9
----------
Investing Activities:
Property additions (85)
Acquisition of businesses, net of cash acquired (292)
----------
Cash used for investing activities (377)
----------
Financing Activities:
Proceeds from short-term borrowings 302
Special payment to Rockwell International (300)
Net transfers from Rockwell International 366
----------
Cash provided by financing activities 368
----------
Change in cash -
Cash at beginning of period 20
----------
Cash at end of period $ 20
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