Rockwell International Corp.
P> Total Contracts $344,192,000
Corporate Headquarters: Seal Beach, Calif.
Despite their increased focus on commercial and international markets, Rockwell executives still manage to win enough government business to make the Top 20 list of federal prime contractors.
The $13 billion company specializes in automation, avionics, semiconductor systems, defense electronics, aerospace, heavy vehicle systems, light vehicle systems and graphic systems. Growth in these diverse divisions bolstered sales 17 percent from $11.1 billion in 1994. Earnings per share rose 19 percent from $2.87 in 1994 to $3.42 in 1995.
In 1995, sales to U.S. commercial and international customers were up 30 percent from 1994 and now comprise 72 percent of the company's total sales, compared to 65 percent in 1994. The company's 1995 international sales increased 24 percent to $4.3 billion, the highest level in Rockwell history.
But sales by Rockwell's aerospace and defense electronics businesses declined as the government continued to cut back spending on defense and space programs. In fact, sales under government contracts accounted for 28 percent of total sales in 1995, 35 percent in 1994 and 39 percent in 1993. Sales to the Department of Defense accounted for 16 percent of total sales compared to 20 percent in 1994, while sales to NASA were 12 percent compared to 15 percent a year ago.
Despite reduced government spending in defense and aerospace, Rockwell still won several hefty contracts from NASA and the Department of Defense. In November 1995, NASA announced a sole-source contract for operation of the space shuttle with United Space Alliance, Rockwell's joint venture with Lockheed Martin Corp.
Currently, Rockwell and Lockheed Martin together perform 80 percent of all operations on the shuttle program. Aside from the space shuttle, Rockwell performs a broad range of projects for NASA. It works on the International Space Station, builds rocket engines, modifies military aircraft, produces aerostructures for commercial aircraft and provides unmanned satellites. Also this year, Rockwell and Orbital Sciences Corp. were selected by the Pentagon to develop the X-34, a reusable launcher for small satellites.
Although Rockwell's defense electronics business declined last year, it still represented 52 percent of the company's total electronics sales. Revenues declined from $998 million in 1994 to $987 million in 1995. Regardless, last year Rockwell posted the second highest earnings in its history.
In June, Rockwell won a $350 million contract to build the U.S. Air Force Scope Command High Frequency global communications systems. The initial order of $5.4 million was for the first of 25 ground stations worldwide.
In another High Frequency network award, the company received a $2 million Project Definition Study contract and was chosen as one of two contractors to compete for implementation of the Australian High Frequency modernization program, which the Australian government valued at $370 million. Work continued under a $120 million engineering and manufacturing development contract to provide the missile seeker and associated electronics for the PAC-3, the next-generation upgrade to the Patriot missile system.
Rockwell also received a $55.3 million order for an additional 102 AGM-130 precision weapons, bringing the total order to date to more than 400 units. At Rockwell's plant in Duluth, Ga., the company has begun production of an advanced version of the weapon, incorporating inertial and Global Positioning System guidance and replacing the older TV-based guidance vision system with state-of-the-art infrared technology.
In May, Rockwell received a $26.5 million add-on award for the U.S. Navy's High Power Transmit Set, a critical communications element for strategic forces.
Not to be left out of the mergers and acquisitions trend, Rockwell purchased Reliance Electric for $1.6 billion and integrated Reliance with its Allen-Bradley Automation business to dominate factory automation. Strong markets, new product introductions and increased market share led to record sales by the company's Semiconductor Systems, Allen-Bradley Automation, and Light and Heavy Vehicle Systems businesses.