Rockwell Collins is a leader in the design, production and support of communications and aviation electronics for commercial and military customers worldwide.
While the company's products and systems are primarily focused on aviation applications, Rockwell Collins' Government Systems business also offers
products and systems for ground and shipboard applications. The integrated system solutions and products the company provides are oriented around a set of core competencies,
including communications, navigation, automated flight control, displays/surveillance, simulation and training, integrated electronics and information management systems.
Rockwell Collins also provides a wide range of services and support to its customers through a worldwide network of service centers, including equipment repair and overhaul,
service parts, field service engineering, training, technical information services and aftermarket used equipment sales.
Rockwell Collins operates in multiple countries and is headquartered in Cedar Rapids, Iowa. The company's heritage is rooted in the Collins Radio Company, established in 1933. Rockwell Collins, Inc., the parent company, is incorporated in Delaware. Rockwell Collins' corporate offices are located in Cedar Rapids, Iowa.
Rockwell Collins serves a worldwide customer base through its two principal business segments:
The following table highlights Rockwell Collins' sales from 2010 to 2012 by segment:
Rockwell Collins' two segments are described in detail below.
The company's Government Systems business provides communication and electronic systems, products and services for airborne and surface applications
to the U.S. Department of Defense, local and state governments, other government agencies, civil agencies, defense contractors and foreign ministries of defense.
These systems, products and services support airborne (fixed and rotary wing), ground and shipboard applications and are used in line-fit applications
on new equipment as well as in retrofit and upgrade applications designed to extend the effective life and enhance the capability of existing aircraft,
vehicle and weapon platforms.
The company's defense communication and electronic systems, products and services include:
-communications systems and products designed to enable the transmission of information across the communications spectrum, ranging from Very Low and Low Frequency
to High, Very High and Ultra High Frequency up through satellite communications
-navigation systems and products, including radio navigation systems, global positioning systems GPS, handheld navigation systems and multi-mode receivers
-subsystems for the flight deck that combine flight operations with navigation and guidance functions and that can include flight controls and displays, information/data processing and communications, navigation and/or safety and surveillance systems
-cockpit display systems, including flat panel, multipurpose, wide fields of view, head-up, head-down and helmet-mounted displays for tactical fighter and attack aircraft
-simulation and training systems, including visual system products, training systems and engineering services
-maintenance, repair, parts and after-sales support services
Government Systems sales are categorized into avionics, communication products, surface solutions and navigation products.
Product category sales are delineated based upon the difference in the underlying product technologies and markets served.
Avionics consists of electronic solutions for a broad range of airborne platforms including fixed and rotary wing aircraft,
unmanned aerial vehicles (UAVs) and the associated aircrew and maintenance training devices and services.
Rockwell Collins provides complete avionics solutions (including cockpit avionics, mission system applications and system integration)
and also provides individual avionics products to platform integrators. The company serves various roles within these markets
including system and subsystems integrator as well as provider of various electronic products.
For the UAV market Rockwell Collins provides cost effective, high performance integrated flight control, navigation, communication and sensor capabilities.
Simulation and training solutions are provided for both fixed-wing and rotary-wing aircraft.
Communication products include full spectrum voice and data connectivity for government and military use in the air, on the ground and at sea. The products support military user requirements for high availability, highly secure, jam resistant wireless communication capability. Products include radio communication, data links, networking devices and satellite communication terminals.
Surface solutions include electronic systems applied to a variety of non-airborne market segments. This includes products and solutions for ground forces, maritime applications, precision targeting systems and surface-based communication network integration programs.
Navigation products are primarily comprised of GPS-based products delivered for precision navigation applications including handheld navigation devices (e.g. DAGR), precision-guided weapons (e.g. JDAM) and other embedded GPS applications.
Financial results for Rockwell Collins' Government Systems segment were as follows:
Rockwell Collins expects Government Systems revenues to decrease by approximately 10% in 2013 as compared to 2012, with about half of the year-over-year decline resulting from the impact of sequestration.
Avionics sales increased $42 million (+3%) primarily due to the following: a $80 million increase resulting from the combined impact of development effort on the KC-46A, KC-10 and KC-390 tanker programs; and a $49 million increase in sales on the Saudi F-15 fighter program. This was partially offset by reductions to revenue of $87 million, primarily attributable to decreased sales for the KC-135 Global Air Traffic Management program and lower deliveries on C-17 transport, CH-53 rotary wing and P-3C special mission aircraft
Communication products sales decreased $46 million, or 7 percent, primarily due to the following: a $21 million reduction due to the completion of a program to provide transportable cellular capabilities in Afghanistan; a $21 million decrease resulting from the combined impact of a program termination for Ground Mobile Radios and reduced funding authorizations on the U.S. Department of Defense FAB-T (Family of Advanced Beyond Line-of Sight terminals) initiative.
Surface solutions sales decreased $151 million (-40%), primarily due to a $52 million reduction attributable to the combined impact of two programs that were terminated for convenience by the U.S. Government during 2011; a $52 million decrease resulting from the combined impact of fewer deliveries of iForce public safety vehicle systems as we exited this product line and a reduction in Joint Precision Approach and Landing System (JPALS) program revenues as it transitions from development into production; and a remaining decrease of $47 million was due to a variety of items, including fewer deliveries of soldier optronics products and a decline in electronic warfare solution program revenues.
Navigation products sales decreased $67 million (-22%), primarily due to an $81 million reduction in revenue from fewer deliveries of the company's Defense Advanced GPS Receiver products as troop deployments wind down in Afghanistan and Iraq.
Government Systems operating earnings were $568 million, or 21.9% of sales, for 2012 compared to operating earnings of $592 million, or 21.0% of sales, for 2011. The $24 million decrease in Government Systems operating earnings was primarily due to the following: a $222 million reduction in sales discussed in the Government Systems sales section above resulted in a $137 million decrease to costs and a reduction to earnings of $85 million. The variable gross margin of 38% reflects the absence of higher margin hardware sales for navigation products that occurred last year; this partially offset by a $34 million benefit to operating earnings resulting from lower company-funded R&D expenses; and the remaining variance of $27 million was primarily attributable to a benefit from lower employee headcount and incentive compensation costs, partially offset by higher warranty expense and an increase in employee medical and retirement benefit costs.
The company's Commercial Systems business supplies aviation electronics systems, products and services to customers located throughout the world.
The customer base is comprised of original equipment manufacturers (OEMs) of commercial air transport as well as business and regional aircraft,
commercial airlines and fractional interest and other business aircraft operators. The company's systems and products are used
in both OEM applications as well as in retrofit and upgrade applications designed to increase the efficiency and enhance the value of existing aircraft.
The company's commercial aviation electronics systems, products and services include:
-integrated avionics systems, such as the Pro Line Fusion system, which provide advanced avionics capabilities to meet the challenges of operating
in the next generation global airspace. Capabilities include synthetic and enhanced vision enabled flight displays, advanced flight and performance
management systems, fly-by-wire integrated flight controls and information management solutions to improve operational efficiency
-integrated cabin electronics systems, including cabin management systems, passenger connectivity and entertainment solutions, business support systems to improve passenger productivity and passenger flight information systems
-navigation systems and products, including landing sensors to enable fully automatic landings, radio navigation and geophysical sensors, as well as flight management systems
-situational awareness and surveillance systems and products, such as synthetic and enhanced vision systems, surface surveillance and guidance solutions, head-up guidance systems, weather radar and collision avoidance systems
-integrated information management solutions to improve the overall efficiency of flight, maintenance and cabin operations. These include on-board information management systems and connectivity solutions, airborne and ground applications and services, and ground infrastructure and services
-communications systems and products, such as data link, High Frequency, Very High Frequency and satellite communications systems
-electro-mechanical systems, including integrated pilot control solutions and primary and secondary actuation systems
-simulation and training systems, including full-flight simulators for crew training, visual system products, training systems and engineering services
-maintenance, repair, parts and after-sales support services
Commercial Systems product category sales are divided into air transport aviation electronics and business and regional aviation electronics.
Product category sales for commercial aviation-related products are delineated based upon the difference in the underlying customer base, size
of aircraft and markets served.
Air transport aviation electronics include avionics, cabin systems and flight control systems for large commercial transport aircraft platforms. Rockwell Collins designs these items as sub-systems and work with OEMs to integrate the company's and other suppliers' products into the flight deck and broader aircraft systems. The company's products offered for OEM applications in the air transport category are marketed directly to aircraft OEMs and airline operators, while the company's products offered for aftermarket applications are primarily marketed to the airline operators.
Business and regional aviation electronics include integrated avionics, cabin management and flight control systems for application on regional and business aircraft platforms. Rockwell Collins develops integrated avionics, cabin and flight control solutions for business and regional aircraft OEMs and supports them with the integration into other aircraft systems. Products offered for OEM applications in the business and regional aircraft category are marketed directly to the aircraft OEMs. Products offered for aftermarket applications are primarily marketed through distributors for business aviation and directly to regional airlines operators. The company's integrated information management solutions for business aircraft are offered directly to flight departments.
Financial results for Rockwell Collins' Commercial Systems segment were as follows:
Rockwell Collins expects Commercial Systems sales to increase by about 7% in 2013 compared to 2012.
Total air transport aviation electronics sales increased $90 million (+9%), primarily due to the following: (1) air transport OEM sales increased $75 million (+15%) driven primarily by higher sales to Boeing and Airbus as they increased aircraft production rates across various platforms, including the Boeing 787 and 737 aircraft and the Airbus A320; (2) air transport aftermarket sales increased $43 million (+10%) - an increase that was driven by higher spares revenues of $19 million, primarily for new Boeing 787 and 747-8 aircraft, and a $22 million increase in retrofit and service and support activities; (3) wide-body IFE sales decreased $28 million (-24%) due to the company's strategic decision announced in 2005 to cease investment in this product area
Total business and regional aviation electronics sales increased $52 million (+6%) primarily due to the following: (1) business and regional OEM sales increased $25 million (+4%) primarily related to a $62 million increase in product deliveries for Bombardier Global, Cessna Citation and Gulfstream aircraft. This was partially offset by net reductions of $37 million, including a $27 million reduction in sales to Hawker Beechcraft who filed for Chapter 11 bankruptcy protection in May 2012, and lower sales to regional jet aircraft manufacturers as production rates declined for certain aircraft; (2) business and regional aftermarket sales increased $27 million (+7%) driven by the combined impact of higher retrofit and service and support activities. Retrofit sales increased as customers upgraded aircraft systems in order to gain operational efficiencies, improve performance and modernize the cabin
Revenues ('12): $4,726M -1.7%
R&D ('12): $320M -9.9%
Net Profit ('12): $609M -3.9%
CAPEX ('12): $138M -9.2%
Avionics; C4ISR Systems; Communication Systems/RF
Communications systems: Very Low and Low Frequency to High, Very High and Ultra High Frequency up through satellite communications; Military data link systems; Navigation systems: Radio navigation systems, global positioning systems GPS, handheld navigation systems and multi-mode receivers; Cockpit display systems: Flat panel, multipurpose, wide fields of view, head-up, head-down and helmet-mounted displays for tactical fighter and attack aircraft; Integrated computer systems; Integrated avionics systems; Integrated cabin electronics systems: Cabin management systems, passenger connectivity and entertainment solutions, business support systems, passenger flight information systems; Navigation systems and products: Landing sensors, radio navigation and geophysical sensors. See more products below!
Major DoD Defense Programs:
Rockwell Collins' Commercial Programs:
| Airbus: A320 Series, A330, A340, A380 | Boeing: 737NG, 747, 757, 767, 777, 787 |
|Sales 2008-2012||Net Income 2008-2012||R&D Spending 2008-2012||# Employees 2008-2012|