Rockwell Collins issues weak 2013 guidance
CEDAR RAPIDS, Iowa (AP) — Rockwell Collins issued guidance for next year that falls short of most Wall Street expectations, citing upcoming cuts to U.S. defense spending.
For the year ending in September 2013, the aerospace and defense electronics company said Friday that it expects to post a net income of $4.30 to $4.50 per share on $4.6 billion to $4.7 billion in revenue.
Analysts, on average, expect a profit of $4.64 per share on $4.86 billion in revenue, according to a FactSet poll.
Clay Jones, Rockwell's chairman and CEO, said defense spending cuts scheduled to go into effect next year have resulted in a high level of uncertainty for all companies that do business with the Pentagon.
The company expects its government services revenue to fall about 10 percent next year, with about half of the drop stemming from government budget cuts.
"As we have done in the past, our company will take swift and appropriate actions to size our infrastructure to reduce costs and enhance our ability to deliver long-term growth and shareowner value," Jones said.
That will include fourth-quarter restructuring charge, Jones said.
Shares of Rockwell Collins Inc. fell $1.39, or 2.7 percent, to $51 in premarket trading.