- Acquisition of B/E Aerospace closes;
new Interior Systems segment created
- Sales and free cash flow guidance
raised
Rockwell Collins, Inc. (NYSE: COL) today reported sales for the
second quarter of fiscal year 2017 of $1.34 billion, a 2% increase
from the same period in fiscal year 2016. Second quarter fiscal
year 2017 earnings per share from continuing operations was $1.27
compared to $1.30 in the prior year. Earnings per share for the
second quarter of fiscal year 2017 includes 7 cents of B/E
Aerospace acquisition-related expenses. Total segment operating
margins were 21.0% for the second quarter of fiscal year 2017, a 30
basis point improvement over the same period in fiscal year
2016.
On April 13, 2017 the company completed the acquisition of B/E
Aerospace, a leading manufacturer of aircraft cabin interior
products and services, for $8.6 billion in total consideration. B/E
Aerospace will operate as a new Interior Systems segment within
Rockwell Collins. The company’s updated full year fiscal 2017
financial guidance adjusted to include the acquisition of B/E
Aerospace is as follows:
- Sales are now expected to be in the
range of $6.7 billion to $6.8 billion (from $5.3 billion to $5.4
billion). Interior Systems (formerly B/E Aerospace) sales are
estimated to be about $1.4 billion.
- GAAP earnings per share are expected to
be in the range of $4.50 to $4.70. Earnings per share adjusted for
B/E Aerospace acquisition-related expenses and total combined
company acquisition-related intangible asset amortization is
expected to be in the range of $5.95 to $6.15 (see the supplemental
schedule included in this press release for a reconciliation of
adjusted earnings per share).
- Free cash flow is now expected to be in
the range of $650 million to $750 million (from $600 million to
$700 million).
"The operating performance of our business through the first
half of 2017 has been very good,” said Rockwell Collins Chairman,
President, and Chief Executive Officer, Kelly Ortberg. “In the
quarter, growth in our Government Systems, Information Management
Services, and Air Transport businesses were partially offset by
sales headwinds from lower business jet OEM deliveries. Operating
margins grew 30 basis points over last year as we continued to
realize the benefit of cost saving initiatives across all of our
businesses."
Ortberg continued, "It's an exciting time as we welcome B/E
Aerospace's talented employees to Rockwell Collins and bring these
two industry leaders together. We have updated our fiscal year 2017
financial guidance to include our new Interior Systems segment,
which will be accretive to adjusted earnings per share right out of
the gate in fiscal year 2017. We are now focused on integrating the
business and achieving our synergy plans."
Following is a discussion of fiscal year 2017 second quarter
sales and earnings for each business segment.
Commercial Systems
Commercial Systems, which provides aviation electronics systems,
products and services to air transport, business and regional
aircraft manufacturers and airlines worldwide, achieved 2017 second
quarter results as summarized below.
(dollars in millions)
Q2 FY 17 Q2 FY 16 Inc/(Dec) Commercial Systems
sales Original equipment $ 337 $ 353 (5 )% Aftermarket 253 248 2 %
Wide-body in-flight entertainment 4 10 (60 )% Total
Commercial Systems sales $ 594 $ 611 (3 )%
Operating earnings $ 132 $ 135 (2 )% Operating margin rate 22.2 %
22.1 % 10 bps
- Original equipment sales decreased due
to lower business aircraft OEM production rates, partially offset
by higher product deliveries in support of Airbus A350 rate
increases and favorable customer timing for airline selectable
equipment.
- Aftermarket sales increased due to
higher regulatory mandate sales, partially offset by lower spares
provisioning for Boeing 787 aircraft.
- Commercial Systems operating earnings
declined $3 million and operating margin improved 10 basis points
over the prior year.
Government Systems
Government Systems provides a broad range of electronic
products, systems and services to customers including the U.S.
Department of Defense, other government agencies, civil agencies,
defense contractors and ministries of defense around the world.
Results from the second quarter of 2017 are summarized below.
(dollars in millions)
Q2 FY 17 Q2 FY 16 Inc/(Dec) Government Systems
sales Avionics $ 367 $ 357 3 % Communication and Navigation 198
181 9 % Total Government Systems sales $ 565 $
538 5 % Operating earnings $ 114 $ 108 6 %
Operating margin rate 20.2 % 20.1 % 10 bps
- Avionics sales increased due to higher
simulation and training program revenues and higher fixed wing
development program sales, partially offset by the wind-down of
legacy tanker hardware deliveries.
- Communication and Navigation sales
increased due to higher datalink program sales and higher
deliveries of GPS-related products.
- Operating earnings and operating margin
increased due to higher sales volume and cost savings initiatives,
partially offset by an unfavorable mix of higher development
program sales.
Information Management Services
Information Management Services (IMS) provides communication
services, systems integration and security solutions across the
aviation, airport, rail and nuclear security markets. Results from
the second quarter of 2017 are summarized below.
(dollars in millions)
Q2 FY 17 Q2 FY 16 Inc/(Dec) Information
Management Services sales $ 183 $ 162 13 % Operating
earnings $ 36 $ 29 24 % Operating margin rate 19.7 % 17.9 % 180 bps
- IMS sales increased due to double-digit
sales growth in aviation related revenues driven by increased usage
of connectivity services and the timing of certain connectivity
related equipment deliveries. In addition, non-aviation revenues
increased double-digits due primarily to the timing of higher
equipment sales for nuclear security programs.
- IMS operating earnings and operating
margin increased due to higher sales volume.
Corporate and Financial Highlights
Income TaxesThe company's effective income tax rate from
continuing operations was 27.9% for the second quarter of fiscal
year 2017 compared to a rate of 26.8% for the same period last
year. The higher current year effective income tax rate from
continuing operations was primarily due to the adoption of new
share-based compensation accounting guidance, which resulted in a
retroactive benefit to income tax expense in the prior year.
Cash FlowCash provided by operating activities from continuing
operations was $1 million for the first six months of fiscal year
2017, compared to $45 million in the first six months of fiscal
year 2016. The decrease in cash provided by operating activities
was due primarily to higher income tax payments and B/E Aerospace
acquisition-related expenses, partially offset by higher cash
collections from customers.
The Company paid a dividend on its common stock of 33 cents per
share, or $86 million, in the second quarter of 2017.
Fiscal Year 2017 OutlookThe following table is a summary
of the company's financial guidance for continuing operations for
fiscal year 2017, which has been updated to include the impact of
the B/E Aerospace acquisition completed on April 13, 2017. This
guidance is based on a preliminary purchase accounting allocation
and is subject to potential adjustments that could be material to
the guidance presented below. In addition, this guidance is based
on the weighted average common shares for fiscal year 2017, which
includes the issuance of 31.2 million shares of Rockwell Collins'
common stock on April 13, 2017 in connection with the acquisition
of B/E Aerospace. Due to the timing of the share issuance, the
earnings per share impact of the acquisition of B/E Aerospace will
be different in our annual results compared to our quarterly
results.
--
Total sales $6.7 bil. to $6.8 bil. (From $5.3 bil. to $5.4 bil.)
--
Total segment operating margins 19% to 20% (From about 21.0%) (1)
--
GAAP earnings per share $4.50 to $4.70 (2)
--
Adjusted earnings per share $5.95 to $6.15 (2)
--
Free cash flow $650 mil. to $750 mil. (From $600 mil. to $700 mil.)
(3)
--
Total research & development investment $1.05 bil. to $1.15
bil. (From $900 mil. to $950 mil.) (4)
--
Full year income tax rate
27% to 28% (From 28% to 29%) (1) - The Company's
expectations for total segment operating margins is unchanged
except for the addition of Interior Systems (formerly B/E
Aerospace). Interior Systems operating margins are projected to be
in the range of 11% to 12% for fiscal year 2017. The Interior
Systems operating margin includes acquisition-related intangible
asset amortization of about 750 basis points of operating margin
impact.
(2) - See the supplemental schedule
included in this press release for a reconciliation of GAAP
earnings per share and adjusted earnings per share.
(3) - The Company's free cash flow
expectations assume capital expenditures will total about $250
million, and net pre-production engineering costs capitalized in
inventory is expected to increase about $50 million in fiscal year
2017. See also the supplemental schedule included in this press
release for a reconciliation of non-GAAP measures.
(4) - Total research and development
investment consists of company and customer funded research &
development expenditures as well as the net increase in
pre-production engineering costs capitalized within inventory.
Non-GAAP Financial InformationTotal segment operating
margin is a non-GAAP measure and is reconciled to the related GAAP
measure, Income from continuing operations before income taxes, in
the Segment Sales and Earnings Information schedule in this press
release. Total segment operating margin is calculated as total
segment operating earnings divided by total sales. The non-GAAP
total segment operating margin information included in this
disclosure is believed to be useful to investors' understanding by
excluding certain expenses we believe are not relevant to
investors' assessment of our operating results.
See also the supplemental schedule included in this press
release for a reconciliation of other non-GAAP measures including
free cash flow and adjusted earnings per share.
Conference Call and Webcast DetailsRockwell Collins
Chairman, President and CEO, Kelly Ortberg, and Senior Vice
President and CFO, Patrick Allen, will conduct an earnings
conference call at 9:00 a.m. Eastern Time on April 21, 2017.
Individuals may listen to the call and view management's supporting
slide presentation on the Internet at www.rockwellcollins.com.
Listeners are encouraged to go to the Investor Relations portion of
the web site at least 15 minutes prior to the call to download and
install any necessary software. The call will be available for
replay on the Internet at www.rockwellcollins.com.
Business HighlightsRockwell Collins named as a 2017
World's Most Ethical Company by the Ethisphere Institute for eighth
straight yearRockwell Collins was recognized by the Ethisphere
Institute, a global leader in defining and advancing the standards
of ethical business practices, as a 2017 World’s Most Ethical
Company®.
U.S. Navy selected Rockwell Collins and Leonardo DRS to field
its Tactical Combat Training System Increment II solutionThe
U.S. Navy selected Rockwell Collins and Leonardo DRS to supply
their encrypted, next-generation tactical training system. Initial
award of $142 million to benefit U.S. Navy and Marine Corps pilots
for advanced fixed and deployable air combat training.
Rockwell Collins selected for Pakistan Air Force C-130
upgradeRockwell Collins’ Flight2™ avionics system was selected
by the Pakistan Air Force through the Foreign Military Sales
Office, Warner Robins, Georgia, for the upgrade of up to 11 C-130E
and 5 C-130B aircraft.
Rockwell Collins will provide the DOD a cross-platform
datalink capability for mobile devicesRockwell Collins was
awarded a Digitally Aided Close Air Support agreement from Defense
Innovation Unit Experimental (DIUx). DIUx increases the Department
of Defense’s access to the leading-edge technologies and talent
that reside in the commercial sector, with the ultimate goal of
accelerating innovation into the hands of men and women in
uniform.
Rockwell Collins selected by Thales to upgrade Hawkei
Protected Mobility Vehicle-Light systemRockwell Collins will
serve as a subcontractor to Thales Australia to integrate the
Digital Terminal Control System into the Integral Computing System
of the Hawkei Protected Mobility Vehicle-Light system.
Asiana Airlines and Air Busan selected Rockwell Collins
flight tracking serviceKorea-based Asiana Airlines and its
subsidiary Air Busan selected Rockwell Collins’ ARINC MultiLink
aircraft tracking service for their respective fleets, joining a
number of other airlines around the world.
Rockwell Collins expanded global aircraft observation weather
program through new agreement with LATAM AirlinesRockwell
Collins expanded its successful operational aircraft weather
observations program to include weather data from LATAM Airlines’
fleet of aircraft. The agreement is the latest as part of a
Rockwell Collins/National Oceanic and Atmospheric Administration
program to improve the accuracy of forecasts for the aviation
industry and the general public.
About Rockwell CollinsRockwell Collins (NYSE: COL) is a
leader in aviation and high-integrity solutions for commercial and
military customers around the world. Every day we help pilots
safely and reliably navigate to the far corners of the earth; keep
warfighters aware and informed in battle; deliver millions of
messages for airlines and airports; and help passengers stay
connected and comfortable throughout their journey. As experts in
flight deck avionics, cabin electronics, cabin interiors,
information management, mission communications, and simulation and
training, we offer a comprehensive portfolio of products and
services that can transform our customers' futures. To find out
more, please visit www.rockwellcollins.com.
Safe Harbor StatementThis press release contains
statements, including statements regarding certain projections,
business trends, and the impact of the acquisition of B/E Aerospace
that are forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from those projected as a result of certain risks and
uncertainties, including but not limited to the financial condition
of our customers and suppliers, including bankruptcies; the health
of the global economy, including potential deterioration in
economic and financial market conditions; adjustments to the
commercial OEM production rates and the aftermarket; the impacts of
natural disasters and pandemics, including operational disruption,
potential supply shortages and other economic impacts;
cybersecurity threats, including the potential misappropriation of
assets or sensitive information, corruption of data or operational
disruption; delays related to the award of domestic and
international contracts; delays in customer programs, including new
aircraft programs entering service later than anticipated; the
continued support for military transformation and modernization
programs; potential impact of volatility in oil prices, currency
exchange rates or interest rates on the commercial aerospace
industry or our business; the impact of terrorist events on the
commercial aerospace industry; changes in domestic and foreign
government spending, budgetary, procurement and trade policies
adverse to our businesses; market acceptance of our new and
existing technologies, products and services; reliability of and
customer satisfaction with our products and services; potential
unavailability of our mission-critical data and voice communication
networks; unfavorable outcomes on or potential cancellation or
restructuring of contracts, orders or program priorities by our
customers; recruitment and retention of qualified personnel;
regulatory restrictions on air travel due to environmental
concerns; effective negotiation of collective bargaining agreements
by us, our customers, and our suppliers; performance of our
customers and subcontractors; risks inherent in development and
fixed-price contracts, particularly the risk of cost overruns; risk
of significant reduction to air travel or aircraft capacity beyond
our forecasts; our ability to execute to internal performance plans
such as restructuring activities, productivity and quality
improvements and cost reduction initiatives; continuing to maintain
our planned effective tax rates; our ability to develop contract
compliant systems and products on schedule and within anticipated
cost estimates; risk of fines and penalties related to
noncompliance with laws and regulations including compliance
requirements associated with U.S. Government work, export control
and environmental regulations; risk of asset impairments; our
ability to win new business and convert those orders to sales
within the fiscal year in accordance with our annual operating
plan; the uncertainties of the outcome of lawsuits, claims and
legal proceedings; uncertainty of the expected financial
performance of the combined company following completion of the
acquisition of B/E Aerospace; failure to realize the anticipated
benefits of the acquisition of B/E Aerospace, including as a result
of delay in integrating the businesses of Rockwell Collins and B/E
Aerospace; risk to the ability of the combined company to implement
its business strategy; as well as other risks and uncertainties,
including but not limited to those detailed herein and from time to
time in our Securities and Exchange Commission filings. These
forward-looking statements are made only as of the date hereof and
the company assumes no obligation to update any forward-looking
statement.
ROCKWELL COLLINS, INC. SEGMENT SALES AND EARNINGS
INFORMATION (Unaudited) (in millions, except per
share amounts)
Three Months Ended Six Months Ended
March 31 March 31 2017 2016 2017 2016
Sales: Commercial Systems $ 594 $ 611 $ 1,143 $ 1,173
Government Systems 565 538 1,040 989 Information Management
Services 183 162 352
318 Total sales $ 1,342 $ 1,311 $ 2,535
$ 2,480
Segment operating earnings:
Commercial Systems $ 132 $ 135 $ 257 $ 260 Government Systems 114
108 210 194 Information Management Services 36
29 66 53 Total segment operating
earnings 282 272 533 507 Interest expense(1) (25 ) (17 ) (45
) (32 ) Stock-based compensation (7 ) (9 ) (13 ) (15 ) General
corporate, net (12 ) (11 ) (23 ) (23 )
Transaction costs for B/E Aerospace
acquisition(1)
(5 ) — (16 ) — Restructuring and asset impairment charges —
— — (45 )
Income from
continuing operations before income taxes 233 235 436 392
Income tax expense (65 ) (63 ) (123 )
(87 )
Income from continuing operations $ 168 $ 172 $
313 $ 305 Income from discontinued operations, net of taxes
— (1 ) — 1
Net
income $ 168 $ 171 $ 313 $ 306
Diluted earnings per share: Continuing operations $
1.27 $ 1.30 $ 2.37 $ 2.30 Discontinued operations —
(0.01 ) — 0.01
Diluted
earnings per share $ 1.27 $ 1.29 $ 2.37 $
2.31
Weighted average diluted shares
outstanding 132.4 132.3 132.1 132.7
(1) During the three and six months ended March 31, 2017,
the Company incurred $8 million and $11 million, respectively, of
bridge facility fees related to the B/E Aerospace acquisition.
These costs are included in Interest expense. Total transaction
costs (including the bridge facility fees) related to the
acquisition of B/E Aerospace during the three and six months ended
March 31, 2017 were $13 million and $27 million, respectively.
The following table summarizes sales by category for the three
and six months ended March 31, 2017 and 2016 (unaudited, in
millions):
Three Months Ended Six Months Ended
March 31 March 31 2017 2016 2017 2016
Commercial Systems sales: Air transport aviation electronics:
Original equipment $ 224 $ 214 $ 424 $ 397 Aftermarket 136 131 259
264 Wide-body in-flight entertainment 4 10 10
21 Total air transport aviation electronics 364
355 693 682 Business and regional
aviation electronics: Original equipment 113 139 231 269
Aftermarket 117 117 219 222 Total
business and regional aviation electronics 230 256
450 491 Total Commercial Systems sales $ 594 $ 611 $
1,143 $ 1,173 Commercial Systems sales: Total original
equipment $ 337 $ 353 $ 655 $ 666 Total aftermarket 253 248 478 486
Wide-body in-flight entertainment 4 10 10
21 Total Commercial Systems sales $ 594 $ 611 $ 1,143 $
1,173 Government Systems Sales: Avionics $ 367 $ 357 $ 686 $
650 Communication and Navigation 198 181 354
339 Total Government Systems Sales $ 565 $ 538 $ 1,040 $ 989
Information Management Services sales $ 183 $ 162 $ 352 $
318 Total sales $ 1,342 $ 1,311 $ 2,535 $ 2,480
The following table summarizes total Research and Development
Investment by segment and funding type for the three and six months
ended March 31, 2017 and 2016 (unaudited, dollars in
millions):
Three Months Ended Six Months Ended
March 31 March 31 2017 2016 2017 2016
Research and Development Investment Customer-funded:
Commercial Systems $ 66 $ 61 $ 131 $ 108 Government Systems 115 99
213 186 Information Management Services 2 2
4 4 Total Customer-funded
183 162 348 298
Company-funded: Commercial Systems 30 26 57 61 Government
Systems 18 19 36 36 Information Management Services (1) —
1 — 1 Total
Company-funded 48 46 93
98
Total Research and Development Expense 231
208 441 396 Increase in Pre-production Engineering Costs,
Net 24 34 24 74
Total Research and Development Investment $ 255
$ 242 $ 465 $ 470 Percent of
Total Sales 19.0 % 18.5 % 18.3 % 19.0 %
(1) Research and development expenses for the Information
Management Services segment do not include costs of internally
developed software and other costs associated with the expansion
and construction of network-related assets. These costs are
capitalized as Property on the Summary Balance Sheet.
ROCKWELL COLLINS, INC. SUMMARY BALANCE SHEET
(Unaudited) (in millions)
March 31, September 30, 2017 2016
Current Assets: Cash and
cash equivalents $ 281 $ 340 Receivables, net 1,135 1,094
Inventories, net(1) 2,013 1,939 Other current assets 150
117 Total current assets 3,579 3,490
Property
1,042 1,035
Goodwill 1,928 1,919
Intangible Assets
672 667
Deferred Income Taxes 143 219
Other
Assets(2) 416 369
TOTAL ASSETS $
7,780 $ 7,699
Current Liabilities: Short-term debt $
855 $ 740 Accounts payable 486 527 Compensation and benefits 196
269 Advance payments from customers 265 283 Accrued customer
incentives 217 246 Product warranty costs 81 87 Other current
liabilities 151 194 Total current liabilities 2,251
2,346
Long-term Debt, Net(2) 1,354 1,374
Retirement Benefits 1,533 1,660
Other Liabilities 240
235
Equity 2,402 2,084
TOTAL LIABILITIES
AND EQUITY $ 7,780 $ 7,699 (1) Inventories, net is
comprised of the following: March 31, September 30, 2017 2016
Inventories, net: Production inventory $ 849 $ 799
Pre-production engineering costs 1,164
1,140 Total Inventories, net $ 2,013 $ 1,939
(1) Pre-production engineering costs include costs incurred
during the development phase of a program in connection with
long-term supply arrangements that contain contractual guarantees
for reimbursement from customers. These costs are deferred in
Inventories, net to the extent of the contractual guarantees and
are amortized to customer-funded research and development expense
within cost of sales over their estimated useful lives using a
units-of-delivery method, up to 15 years.
(2) During the three months ended December 31, 2016, the Company
adopted new accounting guidance requiring debt issuance costs to be
presented on the Condensed Consolidated Statement of Financial
Position as a deduction from the carrying amount of the related
debt liability. As a result, $8 million of debt issuance costs were
reclassified from Other Assets to Long-term Debt, Net as of
September 30, 2016.
ROCKWELL COLLINS, INC. CONDENSED CASH FLOW
INFORMATION (Unaudited, in millions) Six
Months Ended March 31 2017 2016
Operating
Activities: Net income $ 313 $ 306
Income from discontinued operations, net
of tax
— 1 Income from continuing operations
313 305 Adjustments to arrive at cash provided by operating
activities: Non-cash restructuring charges — 6 Depreciation 75 71
Amortization of intangible assets and pre-production engineering
costs 50 54 Stock-based compensation expense 13 15 Compensation and
benefits paid in common stock 33 27 Deferred income taxes 15 48
Pension plan contributions (63 ) (63 ) Changes in assets and
liabilities, excluding effects of acquisitions and foreign currency
adjustments: Receivables (52 ) (50 ) Production inventory (67 ) (87
) Pre-production engineering costs (76 ) (97 ) Accounts payable (28
) (23 ) Compensation and benefits (71 ) (68 ) Advance payments from
customers (16 ) (64 ) Accrued customer incentives (29 ) 8 Product
warranty costs (6 ) (5 ) Income taxes (36 ) 5 Other assets and
liabilities (54 ) (37 )
Cash Provided by Operating
Activities from Continuing Operations 1 45
Investing Activities: Property additions (90 ) (93 )
Acquisition of business, net of cash acquired (11 ) (17 ) Other
investing activities (1 ) —
Cash (Used for)
Investing Activities from Continuing Operations (102 )
(110 )
Financing Activities: Repayment of short-term
borrowings (300 ) — Purchases of treasury stock (5 ) (188 ) Cash
dividends (86 ) (86 ) Increase in short-term commercial paper
borrowings, net 415 372 Proceeds from the exercise of stock options
27 13 Other financing activities (1 ) (1 )
Cash
Provided by Financing Activities from Continuing Operations
50 110 Effect of exchange rate changes
on cash and cash equivalents (8 ) 3
Cash
Provided by Discontinued Operations — —
Net Change in Cash and Cash Equivalents (59 ) 48
Cash and Cash Equivalents at Beginning of Period 340
252
Cash and Cash Equivalents at End of
Period $ 281 $ 300
ROCKWELL COLLINS, INC.NON-GAAP
FINANCIAL INFORMATION(Unaudited)(in millions, except
per share amounts)
Free cash flow is a non-GAAP measure and is reconciled to the
related GAAP measure, Cash Provided by Operating Activities from
Continuing Operations below. Free cash flow is calculated as Cash
Provided by Operating Activities from Continuing Operations less
Property Additions. The non-GAAP free cash flow information
included in this disclosure is believed to be useful to investors’
understanding and assessment of the Company’s ongoing
operations.
Six Months Ended March 31 2017 2016
Cash Provided by Operating Activities from Continuing Operations $
1 $ 45 Less: Property Additions (90 ) (93 ) Free Cash
Flow $ (89 ) $ (48 )
The adjusted net income and adjusted earnings per share non-GAAP
guidance is believed to be useful to investors' understanding and
assessment of our on-going operations and performance of the B/E
Aerospace acquisition, which occurred on April 13, 2017. We believe
adjusted net income and adjusted earnings per share excludes
certain one-time and non-cash expenses not indicative of our
on-going operating results. The Company does not intend for the
non-GAAP information to be considered in isolation or as a
substitute for the related GAAP measures. Adjusted earnings per
share is based on a preliminary purchase accounting allocation and
is subject to potential adjustments that could be material to the
guidance presented below. In addition, adjusted earnings per share
is based on the weighted average shares for fiscal year 2017, which
includes the issuance of 31.2 million shares of Rockwell Collins
common stock on April 13, 2017 in connection with the B/E Aerospace
acquisition. Due to the timing of the share issuance, the earnings
per share impact of the acquisition of B/E Aerospace will be
different in our annual results compared to our quarterly
results.
Year Ending September 30, 2017 (estimated) Low End of
High End of Guidance Guidance ($ millions, impact to
forecasted net income; except per share amounts) Range Range
Forecasted Rockwell Collins stand-alone net income (GAAP) $ 705 $
725 Estimated B/E Aerospace acquisition-related expenses ~(100)
Estimated amortization of B/E Aerospace acquisition-related
intangible assets ~(80) Estimated incremental interest expense from
the B/E Aerospace acquisition ~(60) Estimated impact of B/E
Aerospace operations excluding above items 200 210
Forecasted net income (GAAP) 665 695 Estimated B/E Aerospace
acquisition-related expenses ~100 Estimated amortization of total
combined acquisition-related intangible assets ~110 Forecasted
adjusted net income (non-GAAP) $ 875 $ 905 Forecasted
Rockwell Collins stand-alone earnings per share (GAAP) $ 5.35 $
5.50 Impact of 31.2 million shares of COL equity issued ~(0.55)
Estimated B/E Aerospace acquisition-related expenses ~(0.70)
Estimated amortization of B/E Aerospace acquisition-related
intangible assets ~(0.55) Estimated incremental interest expense
from the B/E Aerospace acquisition ~(0.40) Estimated impact of B/E
Aerospace operations excluding above items 1.35 1.40
Forecasted earnings per share (GAAP) 4.50 4.70 Estimated B/E
Aerospace acquisition-related expenses ~0.70 Estimated amortization
of total combined acquisition-related intangible assets ~0.75
Forecasted adjusted earnings per share (non-GAAP) $ 5.95 $
6.15
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170421005066/en/
Rockwell Collins, Inc.Media Contact:Pam Tvrdy,
319-295-0591pam.tvrdy@rockwellcollins.comorInvestor Contact:Ryan
Miller,
319-295-7575investorrelations@rockwellcollins.com
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