UPDATE 1-Rockwell Collins posts higher quarterly profit

Jan 18 (Reuters) - Rockwell Collins Inc, a supplier of avionics and other electronic systems for commercial and military airplanes, reported higher quarterly profit on Friday, aided by share buybacks and cost controls.

The company raised its earnings outlook for the full year, citing the extension of a federal tax credit.

Net income came to $132 million, or 94 cents a share, in the fiscal first quarter ended Dec. 31, compared with $130 million, or 86 cents a share, a year earlier. There was a lower share count in the latest period As a result of the buybacks, boosting earnings per share.

Quarterly sales fell 3 percent to $1.06 billion.

Rockwell Collins, whose customers include government agencies, plane makers and airlines, has reduced its business in some defense segments as the United States has moved to curb spending. It has also merged facilities and looked to boost sales of commercial technologies amid a cloudy defense outlook.

Government system sales fell 6 percent to $546 million in the quarter, while sales tied to commercial systems rose 1 percent to $516 million.