Rockwell Collins Says Disappointed, But Prepare for Sequestration, Says Planning Up to 350 Layoffs

Rockwell Collins (NYSE: COL) stated today that the company is disappointed but prepared for sequestration – the result of leadership in Washington being unable to work out a deal before the March 1 deadline.“The negative impact of sequestration is a major setback for the aerospace & defense industry, and the U.S. economy as a whole,” stated Chairman and Chief Executive Officer Clay Jones of Rockwell Collins. “Fortunately, we saw this as a highly likely outcome and factored in the impacts of sequestration to our FY 2013 plan.”The company assumed its government revenues would be down 10 percent this year, roughly half of which is directly attributable to sequestration. In addition, it has adjusted its infrastructure, reduced its operating costs and is planning up to 350 layoffs, although no actions will be taken until the exact impact on its military and commercial plans is known. "At a time when jobs and economic growth are in short supply, we can ill afford to have Washington making it worse by failing to resolve this issue," added Jones. "Our national debt must be addressed but it would be hard to find a more irresponsible approach to it than sequestration. I urge our leaders in Washington to quickly remedy the damage that this legislation will bring to our economy and national defense."