Cedar Rapids-based Rockwell Collins Inc. reported slight declines in sales and profits in its first fiscal quarter ended Dec. 31 and announced that it will lay off 500 employees over the next few weeks. The company also plans other cost-cutting changes in expectation of a weaker aerospace market, MarketWatch reported.

Net income for the quarter was $151 million, or 95 cents per share, compared with $154 million, or 93 cents per share, in the year-ago period. The company had 3.7 percent fewer shares than at the same time last year.

Sales were down 5 percent to $1.058 billion. A 5 percent increase in government systems sales was offset by a 14 percent decline in commercial systems sales, primarily due to a strike at Boeing Co. Sales related to business acquisitions contributed $9 million to total revenues.

Overall operating margins were 22.4 percent. Cash provided by operating activities totaled $21 million at the end of the quarter, compared with $32 million reported at the same time a year ago.

Expecting business conditions to continue to deteriorate, Rockwell lowered its 2009 sales expectations to about $4.7 billion from a range of $4.9 billion to $4.95 billion. The company expects commercial systems sales to decline 10 percent for the year, while government systems sales are projected to increase 8 percent.

As a result of these projections, the company will implement several cost-savings measures, including laying off 500 employees and 100 contractors, freezing salaries at last year’s levels and reducing its research and development expenses to about $900 million for 2009, according to MarketWatch.