Rockwell Collins, Inc. (NYSE: COL) today announced its fiscal year 2013 guidance of revenue between $4.6 billion and $4.7 billion, earnings per share in the range of $4.30 to $4.50, and cash flow from operations of $500 million to $600 million. Total segment operating margins are expected to be in the range of 21.0% to 22.0%. The Budget Control Act of 2011 requires reductions (sequestration) to U.S. defense spending beginning on January 2, 2013, the impact of which has been incorporated in the guidance ranges provided above.
“The potential sequestration impacts on the U.S. defense budgets have created unprecedented uncertainty for all businesses that support the Department of Defense. Given the legal requirements set forth in the Budget Control Act of 2011 and the challenges facing the U.S. Congress for the balance of this year, it is more than reasonable to assume sequestration impacts will occur and we have incorporated what we believe them to be in our fiscal year 2013 guidance,” said Rockwell Collins Chairman, President and Chief Executive Officer, Clay Jones. “As we have done in the past, our company will take swift and appropriate actions to size our infrastructure to reduce costs and enhance our ability to deliver long-term growth and shareowner value. These actions include a restructuring charge in the fourth quarter of fiscal year 2012 to position us for improved performance in 2013 and beyond."
Jones went on to state, "Despite this extraordinary headwind, Rockwell Collins should once again demonstrate its ability to maintain strong segment operating margins and, with the benefits of share repurchases, maintain earnings per share in the same range as fiscal year 2012. As I look beyond 2013, I expect government programs transitioning from development into production along with the strong air transport OEM backlog, the launch of new air transport and business aircraft, and our continued focus on shareowner value creation to drive results more in line with our long-term growth targets.”