Rockwell Collins reports sales decline in government systems unit

Rockwell Collins said today that sales in its government systems business dropped during the company's most recent quarter.

The company said quarterly sales hit $538 million, down about 5 percent from the same period the prior year. The unit's communication and navigation sales dropped more steeply than its avionics sales.

Rockwell Collins attributed the decline in communication and navigation sales to "the wind-down of an international electronic warfare program and lower international deliveries of targeting systems." The company's avionics sales reduction was a result of "lower deliveries on various rotary wing platforms [and] lower simulation and training sales." However, that unit did see higher fixed-wing platform revenues, Rockwell Collins said.

The company said the unit's profit also fell because of lower sales volume and higher costs related to expanding in international emerging markets. However, Rockwell's profit was helped by lower company-funded research and development as well as cost savings related to previously announced restructuring plans, according to a company statement.