Rockwell Collins raises full-year profit forecast

For the fiscal year ending in September, the company now forecasts earnings per share of $4.05 to $4.10, up from a previous expectation of $3.95 to $4.05.

Rockwell maintained its sales prediction of about $4.75 billion.

Analysts polled by Thomson Financial, on average, predict a profit of $4.04 per share on revenue of $4.8 billion.

The company said it believes strong commercial original equipment manufacturer delivery schedules and a steady increase in defense spending will more than offset anticipated airline capacity reductions in the last quarter of the fiscal year and into fiscal 2009.

Rockwell also said Friday its fiscal third-quarter earnings rose 19 percent, as higher sales were helped by improving margins across its commercial and government businesses.

Shares slipped 57 cents to $50.89 in premarket electronic trading, from their close Thursday at $51.46, as the market appeared poised to open down.