Rockwell Collins, Inc. reported sales for the second quarter of fiscal year 2018 of $2.180 billion, a 62% increase from the same period in fiscal year 2017, or 5% organic growth excluding $776 million of revenue from the acquisition of B/E Aerospace. Second quarter fiscal year 2018 earnings per share was $1.43 compared to $1.27 in the prior year’s second quarter. Adjusted earnings per share for the second quarter of fiscal year 2018 was $1.81 compared to $1.39 in the prior year’s second quarter (see the supplemental schedule in this press release for a reconciliation between GAAP earnings per share and adjusted earnings per share).
“Our strong performance in the first half of 2018 is underscored by another quarter of robust revenue and earnings growth,” said Rockwell Collins Chief Executive Officer and President, Kelly Ortberg. “Our plan for the year is playing out as we expected, with commercial aftermarket strength, higher business jet utilization, and an improved defense budget environment driving our growth and more than offsetting the anticipated completion of nuclear security mandate-related sales in our Information Management Services business.”
Commercial Systems, which provides aviation electronics systems, products and services to air transport, business and regional aircraft manufacturers and airlines worldwide, achieved 2018 second quarter results.
Original equipment sales increased due to higher business jet equipment deliveries as well as higher Boeing 737 production rates, partially offset by lower customer-funded development program revenues.
Aftermarket sales increased due to higher spares provisioning, service and support activity, regulatory mandate upgrade activity, and used aircraft equipment sales.
Commercial Systems operating earnings increased $19 million and operating margin increased 120 basis points over the prior year due to increased earnings from higher sales volume and favorable sales mix, as higher margin equipment and aftermarket sales increased and lower margin customer-funded development revenues decreased, partially offset by higher company-funded R&D expense and higher pre-production engineering amortization.