Rockwell Collins, Inc. (NYSE: COL) has reported sales in the first quarter of fiscal year 2016 of USD1.169 billion, a five percent decrease from the same period in fiscal year 2015, the company said.
First quarter fiscal year 2016 earnings per share from continuing operations were USD1.00 compared to USD1.26 in the prior year. Earnings per share from continuing operations in the first quarter of fiscal year 2016 includes a 21 cent restructuring charge.
The restructuring charge relates primarily to headcount actions the company is taking as a result of certain challenging market conditions, particularly in business aviation.
During the first quarter of fiscal 2016, the Federal R&D Tax Credit was permanently reinstated retroactive to January 1, 2015, resulting in the recognition of an 18 cent retroactive benefit. As the Federal R&D Tax Credit has been permanently reinstated, the company will also benefit from the Federal R&D Tax Credit throughout fiscal year 2016.
As a result, the company is raising its earnings per share guidance by 25 cents due to the benefit of the Federal R&D Tax Credit which is partially offset by higher restructuring and incentive compensation expense. In addition, the company is increasing its cash flow from operations guidance by USD50 million for fiscal year 2016.
Rockwell Collins develops and deploys innovative communication and aviation electronic solutions for both commercial and government applications.