DOW JONES NEWSWIRES 
 

Rockwell Collins Inc.'s (COL) fiscal third-quarter profit fell 17% due to weakness in its commercial systems business, even as the company reported an increase in government sales. Earnings beat analysts' views, but revenue came in below estimates.

Many companies in the business-jet market have been hurt by falling demand, although Chairman and Chief Executive Clay Jones said earlier this year the company's steadier defense business would see it through the downturn. Rockwell Collins, which supplies aircraft makers with cabin electronics and flight controls, also supplies avionics equipment to Boeing Co.'s (BA) 787 Dreamliner plane, which Boeing has been repeatedly delayed. It's unclear how another recently announced delay for the plane will affect Rockwell.

Rockwell said Thursday its commercial systems business, which provides aviation electronics systems, suffered from lower 787-related revenue on lower order volume because Boeing rationalized inventory after a strike last year.

Meanwhile, for the period ended June 30, Rockwell Collins posted income of $145 million, or 91 cents a share, down from $174 million, or $1.07 a share, a year earlier.

Revenue decreased 9.1% to $1.08 billion. The company's acquisitions of DataPath and SEOS Group contributed $28 million to revenue.

Analysts surveyed by Thomson Reuters expected earnings of 90 cents and revenue of $1.13 billion.

Rockwell Collins' commercial-systems revenue fell 26% as profit dropped 46% on continued lower sales volumes. Government system sales grew 7.2%, boosted four percentage points by the acquisitions, as earnings rose 21%.

The company affirmed April's cut in its estimate for fiscal-year earnings and boosted its revenue forecast $50 million to $4.55 billion because of the DataPath acquisition.

Shares closed Wednesday at $40.26 each and haven't traded premarket.

-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; kerry.benn@dowjones.com