Rockwell Collins commercial OEM sales down in 3QFY2016

Rockwell Collins provided (25-Jul-2016) the following highlights for its Commercial Systems business for 3QFY2016:

• Original equipment sales decreased due to lower business aircraft OEM production rates, lower product deliveries to a Chinese regional aircraft manufacturer, and lower A330 production rates. These decreases were mostly offset by higher product deliveries in support of the A350 and Boeing 787 production ramps, favorable customer timing for airline selectable equipment, higher product deliveries for the Bombardier C Series programme, and higher customer-funded development programme revenues;
• Aftermarket sales increased due to higher simulation hardware deliveries, higher inorganic sales from the acquisition of International Communications Group, and higher flight deck retrofits, partially offset by lower spares provisioning and lower cabin retrofits;
• Operating earnings and operating margin were about flat with the prior year as benefits from cost savings initiatives from previously announced restructuring plans were offset by unfavorable sales mix as lower margin customer-funded development sales increased and higher margin business jet OEM sales decreased. [more - original PR]