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Rockwell Collins Trims Expectations After Charges

Rockwell Collins Inc. (COL) reduced the upper range of its earnings forecast for the current fiscal year. The company now expects EPS of $3.70 to $3.75 compared to its earlier projection of $3.70 to $3.90.

The downside in guidance was on account of the inclusion of approximately a $20 million ($12 million after-tax, or 8 cents per share) charge for facility consolidation, asset impairments and other restructuring activities. The charges were related the closure of San Jose, California, facility related relocation of engineering and production work to other facilities and trimming of work force.

The company now expects revenues to be approximately $4.5 billion for the current fiscal year, down from the earlier guidance of $4.55 billion. Total segment operating margins are now expected to be between 21% and 21.5%, compared to a prior view of 21%.