Rockwell Posts Record Profit, Revenue in Year
Rockwell International, builder of the space shuttle and the B-1B bomber, reported a 20% boost in annual profit to a record $595.3 million on revenue that rose 22% to a record $11.3 billion.
A year earlier, the company reported net income of $496.5 million on revenue of $9.3 billion.
“For the 1985 full year, our aerospace, electronics and automotive businesses achieved record earnings levels, and our general industries businesses recorded a strong increase in earnings,” said Donald Beall, president and chief operating officer.
The company’s electronics sales and earnings increases mainly reflected improved volume and performance in the avionics and telecommunications businesses and the inclusion of the February acquisition of Allen-Bradley Co., which specializes in industrial automation markets, officials said.
Aerospace operating earnings were up 24% to $493.8 million from $397.7 million in 1984, due to continued growth in the B-1B bomber program, officials added.
Rockwell Chairman Robert Anderson said 1986 should be an even better year.
“Even though we expect lower earnings in the early part of the year, due principally to lower volume in the heavy-duty truck market, we expect to see strengthened performance later in the year,” Anderson said in a printed statement.
The fiscal year marked the 10th consecutive year of earnings increases for the Pittsburgh-based aerospace, electronics, automation and vehicle-parts manufacturer.
Rockwell last week pleaded guilty to federal criminal charges that it overbilled the Air Force for spare parts for an airborne military command center. The Air Force moved to bar the company from receiving future Pentagon contracts, but it was unclear how long any ban would remain in effect.
The company reported a record backlog of orders, including unfunded government orders, of $14.6 billion as of Sept. 30, compared to $10.2 billion a year earlier.
The backlog included $6.9 billion of funded government work and $5.9 billion in unfunded orders. The B-1B program accounted for $7.4 billion of the backlog, Rockwell said.
