Northrop Grumman Corp.’s second-quarter net income fell 30 percent in the second quarter on lower revenue and the lack of a tax benefit that boosted the quarter last year.

The Los Angeles defense contractor on Wednesday reported net income from continuing operations of $520 million ($1.81 per share), compared with $740 million ($2.44) a year earlier. The year-earlier period included a $298 million tax benefit.

Revenue fell 9.6 percent to $6.56 billion, which the company attributed to cutbacks in U.S. Department of Defense spending.

Excluding a pension-related gain in the most recent quarter and the tax benefit last year, adjusted profit was $1.59 per share. Analysts surveyed by Thomson Reuters on average expected the company to report adjusted per-share profit of $1.68 on revenue of $6.98 billion.

Northrop, which is relocating its corporate headquarters from Century City to the Washington, D.C. area, said lower demand for systems used by the military cut sales at its electronic systems division by 9.7 percent to $1.79 billion. Lower demand from both military and civilian clients reduced sales at its locally based aerospace division by 8.8 percent to $2.59 billion.

Information systems sales were down 4.3 percent, while technical services sales fell 18 percent, the later primarily due to the company’s reduced participation in a Nevada joint venture.

But Northrop did raise its profit forecast for the year, saying it now expects earnings from continuing operations of $6.75 to $6.90 per share, up from its first quarter guidance of $6.50 to $6.70. The company cut its sales forecast to $27 billion from a previous $27.5 billion, saying it expects improvement in its profit margin and pension income of about $400 million to offset the impact of lower revenue.

“Based on our year-to-date results we are increasing our (earnings per share) guidance and maintaining our guidance for cash generation, despite a reduced top line outlook that reflects the realities of our current budget environment,” Chief Executive Wes Bush said in a statement.

Shares closed down $2.72, or 4 percent, to $62.68 on the New York Stock Exchange.