Rockwell Collins (COL) has reported a 4.43 percent fall in profit for the year ended Sep. 30, 2014. The company has earned $604 million, or $4.42 a share in the year, compared with $632 million, or $4.58 a share for the last year.
"Diluted earnings per share from continuing operations decreased 1 percent to $4.52, as the benefit from higher earnings in Commercial Systems and Information Management Services were offset by lower earnings and reduced sales volumes within Government Systems, as well as higher interest costs and higher income taxes resulting from differences in availability of the Federal Research and Development Tax Credit, which expired on Dec. 31, 2013," the company said. Revenue during the year grew 11.29 percent to $4,979 million from $4,474 million in the previous year. Total expenses were 81.10 percent of annual revenues, up from 80.04 percent for the last year. That has resulted in a contraction of 106 basis points in operating margin to 18.90 percent.
Operating income for the year was $941 million, compared with $893 million in the previous year.
"Looking forward to 2015, we anticipate total sales in the range of $5.2 billion to $5.3 billion and diluted earnings per share in the range of $4.90 to $5.10," the company said.
Cash Flow Rockwell Collins has generated cash of $660 million from operating activities during the year, up 11.30 percent or $67 million, when compared with the last year.
The company has spent $1,537 million cash to meet investing activities during the year as against cash outgo of $118 million in the last year.
Cash flow from financing activities was $827 million for the year as against cash outgo of $448 million in the last year period. It has borrowed net of $1,158 million through debt. It has spent net of $174 million on repurchase of common stocks.
Cash and cash equivalents stood at $323 million as on Sep. 30, 2014, down 17.39 percent or $68 million from $391 million on Sep. 30, 2013.
Working Capital
Rockwell Collins has witnessed a decline in the working capital over the last year. It stood at $1,006 million as at Sep. 30, 2014, down 9.61 percent or $107 million from $1,113 million on Sep. 30, 2013.
Current ratio was at 1.46 as on Sep. 30, 2014, down from 1.56 on Sep. 30, 2013. Days sales outstanding went down to 79 days for the year compared with 83 days for the same period last year.
Debt Level
Rockwell Collins has witnessed an increase in total debt over the last one year. It stood at $2,167 million as on Sep. 30, 2014, up 116.92 percent or $1,168 million from $999 million on Sep. 30, 2013.
Total debt was 30.68 percent of total assets as on Sep. 30, 2014, compared with 18.50 percent on Sep. 30, 2013. Debt to equity ratio was at 1.15 as on Sep. 30, 2014, up from 0.62 as on Sep. 30, 2013. Interest coverage ratio decreased to 15.95 for the year from 31.89 for the same period last year.
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