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Rockwell Collins enters into accelerated share repurchase agreement
CEDAR RAPIDS, Iowa (October 01, 2007) - Rockwell Collins, Inc. (NYSE: COL) announced that earlier today it repurchased 3.0 million shares, or approximately 1.8 percent
of its outstanding common stock. The shares were purchased from UBS AG, London Branch in conjunction with an accelerated
share repurchase agreement at an initial total cost of $224 million, or $74.77 per share.
Under terms of the agreement, Rockwell Collins was able to immediately repurchase the 3.0 million shares. The repurchased
shares are subject to a future price adjustment to be determined based on the volume weighted average market trading price
of Rockwell Collins common stock over a period of up to two and one-half months.
"Our ability to generate significant operating cash flow enables us to execute on all elements of our capital deployment strategy,
including returning value to shareowners through an active share repurchase program," said Rockwell Collins Senior Vice President
and Chief Financial Officer Patrick Allen. "This particular method of repurchasing shares is an economically attractive way
for us to immediately deploy available capital."
Following the completion of this transaction, the company has $16 million of authorized share repurchases remaining.
In addition, the company reaffirmed its fiscal year 2008 earnings per share guidance range of $3.80 to $3.95 as the shares
repurchased under this agreement were contemplated in the company's original plan for fiscal year 2008 share repurchases.
Rockwell Collins is a pioneer in the development and deployment of innovative communication and aviation electronic solutions
for both commercial and government applications. Our expertise in flight deck avionics, cabin electronics, mission communications,
information management, and simulation and training is delivered by 20,000 employees, and a global service and support network
that crosses 27 countries. To find out more, please visit www.rockwellcollins.com.
This press release contains statements, including certain projections and business trends, that are forward-looking statements
as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected
as a result of certain risks and uncertainties, including but not limited to the financial condition of our customers (including
major U.S. airlines); the health of the global economy; delays related to the award of domestic and international contracts;
the continued support for military transformation and modernization programs; the potential adverse impact of oil prices on
the commercial aerospace industry; the impact of the global war on terrorism on U.S. government military procurement expenditures
and budgets; changes in domestic and foreign government spending, budgetary and trade policies adverse to our businesses;
market acceptance of our new and existing technologies, products and services; reliability of and customer satisfaction with
our products and services; favorable outcomes on or potential cancellation or restructuring of contracts, orders or program
priorities by our customers; customer bankruptcies and profitability; recruitment and retention of qualified personnel; regulatory
restrictions on air travel due to environmental concerns; effective negotiation of collective bargaining agreements by us
and our customers; performance of our suppliers and subcontractors; risks inherent in development and fixed price contracts,
particularly the risk of cost overruns; risk of significant disruption to air travel; our ability to execute to our internal
performance plans such as our productivity improvement and cost reduction initiatives; achievement of our acquisition and
related integration plans; continuing to maintain our planned effective tax rates; our ability to develop contract compliant
systems and products on schedule and within anticipated cost estimates; risk of fines and penalties related to noncompliance
with export control regulations; risk of asset impairments and government claims related to our pension plan freeze; our ability
to win new business and convert those orders to sales within the fiscal year in accordance with our annual operating plan;
and the uncertainties of the outcome of litigation, as well as other risks and uncertainties, including but not limited to
those detailed herein and from time to time in our Securities and Exchange Commission filings. These forward-looking statements
are made only as of the date hereof and the company assumes no obligation to update any forward-looking statement.
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