Rockwell Collins (COL) said its fourth-quarter earnings rose 25.5% from the year-ago period.
The Cedar Rapids, Iowa.-based maker of communication and aviation electronics for commercial and military aircraft earned $138 million, or 79 cents a share, in the quarter, compared with $110 million, or 62 cents a share, a year ago. Fourth-quarter results included a gain of $13 million, or 7 cents a share, from the sale of Rockwell Scientific, an equity affiliate; a restructuring charge of $9 million, or 5 cents a share, and stock-based compensation costs of $3 million, or 2 cents a share. Analysts polled by Thomson First Call were expecting earnings of 76 cents a share in the most recent quarter.
Fourth-quarter revenue increased 10.2% from a year ago to $1.06 billion as against analysts' expectation of $1.07 billion.
The company reaffirmed its full-year 2007 earnings guidance of $3.10 to $3.20 a share on revenue of $4.2 billion to $4.3 billion. Analysts' estimates stand at $3.15 a share on revenue of $4.3 billion.
"Profitable growth in both our Government and Commercial Systems businesses made this the third consecutive year in which we've met or exceeded each of our long-term targets for growth and financial performance," the company said.
Operating profit in the fourth quarter increased 25.6% to $216 million, and operating margin rose 250 basis points to 20.4%.
Government systems, which provide aviation electronics, navigation and precision guidance to the U.S. government, recorded an increase of 5% in sales to $558 million.
Commercial systems, which provide aviation electronics systems products to air transport, business and regional aircraft manufacturers and airlines worldwide, achieved an increase of 17% in sales to $503 million.
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