Defense contractor Rockwell Collins Inc. (COL) spent $217,317 during the second quarter 2010 on lobbying, which shot up by $63,229 from the year-ago level, but moderated by $22,960 from first-quarter 2010 expenses of $240,097.
During the second quarter 2010, Rockwell lobbied with the Congress, National Aeronautics and Space Administration, the Transportation Department and other agencies for additional funding for GPS devices and other issues.
The defense department is presently looking for ways to trim down the defense budget by $100 billion in the next five years, which can impact defense operators, who manufacture arms for conventional warfare. Most of the defense contractors have now started to lobby on different issues to ensure continuous funding of the varied projects in which they are currently engaged in.
The lobbying expenses of Rockwell during the second quarter 2010 were, however, lower than its peer Raytheon Co.’s (RTN) $1.7 million. Raytheon lobbied for issue relating to security, trade, military spending and other business matters.
The adjusted earnings of Rockwell at the end of the second quarter 2010 were 89 cents a share compared with a net loss of 91 cents per share in the year-ago comparable period. The Zacks Consensus Estimates for third quarter 2010, fiscal year 2010 and fiscal year 2011 are 95 cents per share, $3.52 per share and $3.98 per share, respectively.
Rockwell currently retains a Zacks #3 Rank (short-term Hold rating). We also maintain a Neutral rating on the stock.
Based in Cedar Rapids, Iowa, Rockwell Collins engages in the design, production, and support of communications and aviation electronics for its commercial and military customers worldwide.
ROCKWELL COLLIN (COL): Free Stock Analysis Report
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