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Monday, Jan 30, 2023
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Northrop Profit Up, Outlook Raised

Northrop Grumman Corp. on Thursday said that higher sales of its electronic aerospace and air-combat systems helped boost its second-quarter results. The company also raised its full-year earnings forecast.


The L.A.-based defense contractor reported net income of $367 million ($1 per diluted share) for the second quarter ended June 30, compared with $298 million (82 cents) for the like period a year earlier. Revenue rose 7 percent to $8 billion from $7.4 billion in the comparable period of the prior year.


Analysts expected a second-quarter profit of 88 cents per share on revenue of $7.8 billion.


Northrop said results were boosted by its Electronic Systems unit, which includes its aerospace navigation and surveillance products. Sales at that unit rose 11 percent to $1.8 billion from the comparable period of the prior year. Sales at the Integrated Systems unit, which produces air-combat systems, jumped 24 percent from a year earlier to $1.4 billion.


Gains at its Ships sector, including its Newport News warship operation, edged up 2 percent to $1.6 billion.


Northrop said its total backlog of uncompleted work fell to $57.1 billion from $58.1 billion at the end of last year.


Citing strength across its operations, Northrop raised its full-year forecast for earnings from continuing operations to a range of $3.90 to $4 per diluted share, up from previous guidance of $3.70 to $3.85 per diluted share. The company reaffirmed its full-year sales forecast of $31 billion to $31.5 billion


Analysts are expecting full-year profit of $3.83 per share on revenues of $31.4 billion.


For 2006, Northrop expects earnings from continuing operations of $4.10 to $4.30 per diluted share. Analysts forecast 2006 earnings of $4.14 per share.


Northrop’s shares settled down 0.9 percent to $56.18 on Thursday.

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