Rockwell Collins, Inc. (NYSE: COL) today reported first quarter fiscal year 2013 net income of $132 million, an increase of 2%, compared to the same period last year. Earnings per share for the quarter were $0.94, $0.08 higher than earnings per share of $0.86 in the prior year. Earnings per share growth was higher than the rate of net income growth due to the favorable effect of the company's share repurchase program.
The company reported total sales of $1.06 billion for the first quarter of 2013, a 3% reduction from $1.09 billion for the same period in 2012. Meanwhile, total segment operating margins increased in the first quarter of 2013 to 20.1 percent of sales compared to 19.9 percent of sales in 2012.
Cash provided by operating activities for the first quarter of 2013 totaled $63 million, an increase of $127 million, compared to a $64 million use of cash in the first quarter of last year. The improvement in cash from operations was primarily driven by increased collections from customers, improved inventory performance and lower employee incentive compensation payments.
"I am very pleased with our results this quarter, which generated 9% EPS growth and strong cash flow on declining sales," said Rockwell Collins Chairman and Chief Executive Officer, Clay Jones. "Despite continued government and economic uncertainty, our focus on the things we can control such as costs, capital deployment, and investments are paying off. For example, in the first quarter, we expanded operating margins, reduced our share count by 4%, and won a number of programs to enhance future growth."
Jones went on to state, "We are off to a solid start in this year of transition for our company and should see improving performance throughout the year. Fortunately, we had already incorporated the impact of sequestration in our annual guidance and expect a greater benefit from our FY12 restructuring actions in subsequent quarters as well. Therefore, we are increasingly confident that we can meet or exceed our financial expectations."