Rockwell Collins ( COL) reported flat earnings for its fiscal second quarter and warned that full-year EPS would likely fall below Wall Street's expectations as its business suffers from a worldwide collapse in demand for new airplanes.

The company, which makes aircraft electronics, said "dramatic production cuts by business jet manufacturers" caused it to lower 2009 EPS guidance to $3.70-$3.90 from $4.10-$4.30. Analysts polled by Thomas Financial had been expecting $4.08 per share.

For the fiscal second quarter, Rockwell said earnings slipped 2% to $164 million from $168 million. EPS was $1.03, meeting analysts' estimates and the level with the year-ago period. Sales, meanwhile, declined 4% to $1.14 billion, compared with $1.19 billion a year ago.

The biggest drag on earnings came from the company's commercial systems division, which makes electronics for non-military aircraft. Sales there fell 14% to $525 million. One of its biggest customers is Boeing, which suffered production delays late last year amid labor strikes.

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