This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Rockwell Collins' CEO Discusses Q1 2012 Results - Earnings Call Transcript

I would also note that this performance was delivered without the benefit of any meaningful overall business jet OEM market recovery.

Now meanwhile, Government Systems was able to maintain their industry-leading operating margins above 20% despite a 10% or $67 million decline in sales. In an environment where our top line has become more difficult to predict, I'm really proud of our team's focus on the things within our control as we continue to take aggressive actions to rightsize the infrastructure of this business based on market conditions.

Now as we've been predicting, we face one more quarter of difficult comparability in Government Systems as the effects of program cancellations and a large slowdown in procurement of our Defense Advanced GPS Receiver play through our top line. However, I am increasingly confident that the significant improvements we forecast for the second half of the fiscal year will happen. And here's why.

We expect sales of the KC-46, KC-10 and KC-390 tanker programs to continue accelerate through the year, along with the F-15 foreign military sale through Boeing to Saudi Arabia. We should also see growing sales of the fifth generation ARC-210 airborne radio system, as well as increased deliveries of our FireStorm targeting system to international customers.

With the risk of an extending -- extended continuing resolution behind this and our backlog strengthening, we believe Government Systems can achieve mid-single-digit growth in the second half of the year.

Now as I look out beyond the current fiscal year, I also see opportunities to accelerate growth in both segments. In Commercial Systems, these include 787 production ramp-up, the introduction of the CSeries, the A350 and multiple international regional jets, and a market recovery for business jets. In Government Systems, I expect selected growth opportunities in areas such as tankers, UAVs, the JTRS HMS program, ARC-210 radios, our next-generation GPS products for the MGUE program and international opportunities, including the Saudi F-15 I mentioned earlier, helicopter retrofits, FireStorm targeting systems, KC-390, C-130 upgrades, and various communication programs.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,096.90 -106.47 -0.58%
S&P 500 2,098.53 -9.25 -0.44%
NASDAQ 4,967.1410 -12.76 -0.26%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs