Rockwell Collins, Inc. (COL) has reported a 13.04 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $208 million, or $1.58 a share in the quarter, compared with $184 million, or $1.38 a share for the same period last year. Revenue during the quarter grew 4.41 percent to $1,445 million from $1,384 million in the previous year period. Total expenses were 21.59 percent of quarterly revenues, up from 20.38 percent for the same period last year. That has resulted in a contraction of 122 basis points in operating margin to 78.41 percent.
Operating income for the quarter was $1,133 million, compared with $1,102 million in the previous year period.
"I'm pleased to report a strong quarter of operational performance highlighted by double-digit earnings per share growth and robust quarterly free cash flow generation," said Rockwell Collins chairman, president, and chief executive officer, Kelly Ortberg. "As we look to fiscal year 2017, we expect continued recovery in Government Systems driven by an improved budget environment. We also expect our Information Management Services business will continue to grow as a result of the ongoing demand for aircraft connectivity. Our Commercial Systems business is expected to be flat as air transport OEM growth is being offset by lower business jet sales and aftermarket parts recycling. We look forward to completing the acquisition of B/E Aerospace which will significantly enhance our long-term outlook."
For fiscal year 2017, Rockwell Collins, Inc. forecasts revenue to be in the range of $5,300 million to $5,400 million.
Operating cash flow falls marginally
Rockwell Collins, Inc. has generated cash of $723 million from operating activities during the year, down 1.63 percent or $12 million, when compared with the last year. The company has spent $209 million cash to meet investing activities during the year as against cash outgo of $291 million in the last year.
The company has spent $422 million cash to carry out financing activities during the year as against cash outgo of $492 million in the last year period.
Cash and cash equivalents stood at $340 million as on Sep. 30, 2016, up 34.92 percent or $88 million from $252 million on Sep. 30, 2015.
Debt remains almost stable
Total debt of Rockwell Collins, Inc. remained almost stable for the quarter at $2,122 million, when compared with the last year period. Total debt was 27.53 percent of total assets as on Sep. 30, 2016, compared with 28.80 percent on Sep. 30, 2015. Debt to equity ratio was at 1.02 as on Sep. 30, 2016, down from 1.13 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 70.81 for the quarter from 68.88 for the same period last year.
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