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An introduction to Rockwell Collins

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About the company

Rockwell Collins (COL) engages in the design, production, and support of innovative solutions in the aerospace and defense market. Its products and systems are primarily focused on aviation applications and integrated system solutions. The company offers a balanced business model between commercial and military segments, enabling it to leverage technological advancements from both areas and bring solutions quickly and at a lower cost.

Rockwell Collins’s core competencies include:

  • cabin management communications
  • displays and surveillance systems
  • flight controls
  • information management services
  • integrated avionics
  • integrated mission and training solutions
  • navigation systems

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Global network

Rockwell Collins has a global service and support network spanning 27 countries. The company provides a wide range of services, such as:

  • equipment repair and overhaul
  • service parts
  • field service engineering
  • training
  • technical information services
  • aftermarket used equipment sales.

Rockwell Collins has a market share of 3% among its competitors. Its competitors include The Boeing Company (BA) with 22%, Honeywell International (HON) with 18%, and Lockheed Martin (LMT) with 14%. All of these companies are part of the SPDR S&P Aerospace & Defense ETF (XAR).

4Q14 performance

In the fourth quarter of 2014, Rockwell Collins saw a 15% year-over-year boost in its top line to $1,402 million, primarily due to the ARINC acquisition. The company saw healthy sales growth in its Commercial Systems and Information Management Systems segments, while the Defense Systems segment saw a slight decline due to US military budget cuts.

The income from operations saw a slight decline in comparison to the same period last year, while the total segment operating income during the quarter was $299 million, reflecting a 9.5% year-over-year growth from $273 million in the same quarter last year.

The overall revenues grew at 11% year-over-year for FY2014 to $4,979 million. The earnings came in at $4.51 per share, which was up 6.9% year-over-year from 2013.

Following this introduction to Rockwell Collins, we’ll take a look at the company’s business segments.

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