About Rockwell Collins, Inc.

Rockwell Collins makes aviation electronics and communication equipment for commercial and military aircraft. The company also provides flight simulation and training, MRO services, navigation, and surveillance systems. It has three primary segments: commercial systems (avionics and in-flight entertainment systems for commercial aircraft); government systems (airborne/ground/shipboard communication systems with military applications and overhaul services); and information management services business (communications, systems integration and security solutions). In 2017, Rockwell Collins agreed to be acquired by diversified manufacturing giant United Technologies for $23 billion.

Change in Company Type

In the biggest aerospace deal in history, Rockwell Collins agreed to be purchased by United Technologies Corporation (UTC) for $23 billion in September 2017. When the deal is completed, Rockwell Collins will become a new UTC division named Collins Aerospace Systems. UTC projects the new division will generate more than $23 billion in revenue per year and will make aviation electronics and communication equipment for commercial and military aircraft. Rockwell Collins will also work in tandem with UTC's reputable Pratt & Whitney subsidiary, which makes commercial, military, and business jet engines.

Operations

Rockwell Collins' government systems segment (more than 40% of total sales) provides products for a variety of uses but they all have the common theme of design for use under rugged conditions constrained by challenges in relation to size, weight, and power. These products include satellite communications systems, handheld navigation devices, flight controls, helmet-mounted displays, and training systems.

Rockwell Collins' commercial systems segment (45%) provides systems and products for the original manufacturing, retrofitting, and upgrading of aircraft. Products include the Pro Line Fusion integrated avionics system, cabin management systems, head-up guidance systems, primary actuation systems, and simulators for crew training. The segment serves a range of customers, from the biggest aircraft makers in the world to owners of individual aircraft. Aftermarket products are sold through distributors and to regional airline operators.

Its information management services segment (almost 10%) provides communications services, systems integration, and security services across the aviation, airport, rail, transit, and nuclear security markets to customers located around the world. Its customer base includes commercial airlines, business aircraft operators, the US Federal Aviation Administration (FAA), airport and critical infrastructure operators, and major passenger and freight railroads.

Geographic Reach

Rockwell Collins operates in countries including France, Canada, Germany, Japan, Australia, China, India, Ireland, Italy, Spain, Singapore, Brazil, South Korea, the United Arab Emirates, Saudi Arabia, South Korea, the UK, and the US. The company makes about 65% of its sales in the US.

Sales and Marketing

Rockwell Collins markets its systems, products and services directly to government systems and commercial systems customers through an internal marketing and sales force. The company also utilizes a worldwide dealer network to distribute its products and international sales representatives to assist with international sales and marketing.

The US government accounts for almost 35% of sales. Customers include the Department of Defense, US Coast Guard, civil agencies, defense contractors, foreign ministries, commercial air support manufacturers, and airlines.

Financial Performance

In 2016, Rockwell Collins' revenues peaked at $5.26 billion, a new company milestone. The historic growth for 2016 was fueled by a 6% spike from information management services sales and a 1% bump in government systems sales; this was offset by a 2% decline in commercial systems sales.

Despite the historic revenues, Rockwell Collins states it was negatively impacted by business jet production rate declines and muted air transport aftermarket conditions as a result of the recycling of used aircraft parts across the industry during 2016. Anticipating this, the company initiated a restructuring plan aimed at adjusting its cost structure to these market dynamics. As a partial result of this plan, Rockwell Collins' profits jumped 6% to peak at a record-setting $728 million in 2016.

After climbing for several straight years, the company's operating cash flow decreased slightly by $26 million during 2016. This was attributed to a decrease in cash receipts from customers and a slight increase in employee incentive payments.

Strategy

Joint ventures are an important element of the company's strategy for growth. It maintains 50-50 JVs with BAE Systems for Data Link Solutions (serving the worldwide data link market); Elbit Systems for Vision Systems International (helmet-mounted cueing systems for the military fixed-wing market); Honeywell International for Integrated Guidance Systems (weapons guidance and navigation products); and Quadrant Group for Quest Flight Training (aircrew training for the UK Ministry of Defense).

Mergers and Acquisitions

Over the years, Rockwell Collins has achieved revenue milestones with the aid of key acquisitions. In its largest acquisition to date, Rockwell Collins in 2017 acquired B/E Aerospace in a transaction valued at $8.6 billion, including the assumption of debt. The major deal largely expanded the range of products that Rockwell Collins supplies to major commercial and business aircraft and broadened its customer base internationally. It specifically added seating, food and beverage preparation and storage equipment, lighting and oxygen systems, and modular galley and lavatory systems to its product portfolio.

In 2015 the company acquired International Communications Group (ICG), which provides satellite-based global voice and data communication products and services for the aviation industry, for $50 million. The deal broadened the company's flight deck and connectivity portfolio. Previously in 2015, Rockwell Collins acquired Pacific Avionics Pty. Limited, which provides technologies used for wireless information distribution. It made the purchase for $24 million as the acquisition further enhanced its cabin products and information management services portfolios.

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Rockwell Collins, Inc.

400 Collins Rd Ne
Cedar Rapids, IA 52498-0505
Phone: 1 (319) 295-1000
Fax: 1 (319) 295-1523

Stats

  • Employer Type: Public
  • Stock Symbol: COL
  • Stock Exchange: NYSE
  • Chairman, President, and CEO: Robert` K. Ortberg
  • SVP, Operations: Bruce M. King
  • Chairman, President, and CEO: Robert` K. Ortberg
  • 2016 Employees: 19,000

Major Office Locations

  • Cedar Rapids, IA

Other Locations

  • Foley, AL
  • Huntsville, AL
  • Chandler, AZ
  • Tucson, AZ
  • Anaheim, CA
  • Burlingame, CA
  • Calexico, CA
  • Carlsbad, CA
  • Corona, CA
  • Hawthorne, CA
  • Irvine, CA
  • Livermore, CA
  • Los Angeles, CA
  • Marina Del Rey, CA
  • Westminster, CA
  • Stratford, CT
  • Crestview, FL
  • Doral, FL
  • Hurlburt Field, FL
  • Longwood, FL
  • Melbourne, FL
  • Miami, FL
  • Miramar, FL
  • Niceville, FL
  • Orlando, FL
  • Tampa, FL
  • Atlanta, GA
  • Duluth, GA
  • Hampton, GA
  • Savannah, GA
  • Coralville, IA
  • Decorah, IA
  • Manchester, IA
  • Des Plaines, IL
  • Hanover Park, IL
  • O Fallon, IL
  • Rockford, IL
  • Independence, KS
  • Lenexa, KS
  • Shawnee Mission, KS
  • Wichita, KS
  • Barksdale Afb, LA
  • Lexington, MA
  • Rockport, MA
  • Annapolis, MD
  • Cockeysville, MD
  • Columbia, MD
  • Millersville, MD
  • Livonia, MI
  • Southfield, MI
  • Bay Saint Louis, MS
  • High Point, NC
  • Morrisville, NC
  • Winston Salem, NC
  • Minot, ND
  • Hampton, NH
  • Paramus, NJ
  • Albuquerque, NM
  • Binghamton, NY
  • Bohemia, NY
  • Cornwall, NY
  • Elmont, NY
  • Medford, NY
  • New York, NY
  • Oklahoma City, OK
  • Tulsa, OK
  • Wilsonville, OR
  • Kennett Square, PA
  • Middletown, PA
  • Mountainhome, PA
  • Tioga, PA
  • Upper Chichester, PA
  • Washington Crossing, PA
  • Clarksville, TN
  • Memphis, TN
  • Abilene, TX
  • Addison, TX
  • Carrollton, TX
  • Dallas, TX
  • Euless, TX
  • Grand Prairie, TX
  • Greenville, TX
  • Houston, TX
  • Irving, TX
  • Pleasanton, TX
  • Richardson, TX
  • Waco, TX
  • Salt Lake City, UT
  • Arlington, VA
  • Charlottesville, VA
  • Sterling, VA
  • Warrenton, VA
  • Bothell, WA
  • Everett, WA
  • Federal Way, WA
  • Tumwater, WA
  • New Berlin, WI
  • Fenwick, WV
  • Ciudad De Buenos Aires, Argentina
  • Bruxelles, Belgium
  • Dorval, Canada
  • Richmond, Canada
  • Beijing, China
  • Blagnac, France
  • Le Bourget, France
  • Saint Maximin, France
  • Thiais, France
  • Tremblay En France, France
  • Lantau Island, Hong Kong
  • Hyderabad, India
  • Tokoname, Japan
  • Moscow, Russia
  • Singapore, Singapore
  • Taipei City, Taiwan
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