Rockwell Collins Q1 2016 sales $1.169 billion, 5% down
First quarter fiscal year 2016 earnings per share from continuing operations were $1 compared to $1.26 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 $50 million for fiscal year 2016.
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