Northrop Grumman Reports 3Q Results

Wednesday, October 27, 2010

Northrop Grumman Corporation (NYSE: NOC) reported that third quarter 2010 earnings from continuing operations increased to $489 million, or $1.64 per diluted share, from $464 million, or $1.45 per diluted share, in the third quarter of 2009.  Net earnings for the 2010 third quarter increased to $497 million, or $1.67 per diluted share, from $490 million, or $1.53 per diluted share, in the prior year period.  The 2009 third quarter included a net tax benefit of $75 million, or $0.23 per diluted share.  Third quarter 2010 sales increased 4 percent to $8.7 billion from $8.35 billion.  

Cash provided by operations totaled $978 million in the third quarter of 2010 compared with $544 million in the third quarter of 2009. New business awards for the 2010 third quarter totaled $7.4 billion, bringing total backlog to $64.6 billion as of Sept. 30, 2010.  

"This was a strong quarter for Northrop Grumman.  Third quarter results demonstrate that our focus on sustainable performance improvement continues to gain traction across the corporation.  All our businesses performed well, and based on year-to-date results, we are raising our 2010 EPS guidance to $6.85 to $7.00 per share.  We are also confirming our guidance for cash from operations and free cash flow.  Looking ahead, we continue to position the company to generate value for shareholders, customers and employees," said Wes Bush, CEO and president.  

Third quarter 2010 operating income increased 29 percent to $801 million from $619 million in the prior year period, and as a percent of sales increased 180 basis points to 9.2 percent from 7.4 percent.  The improvement principally reflects higher segment operating income and lower net pension adjustment.  Third quarter 2010 segment operating income increased $107 million, or 14 percent, driven by double-digit increases in operating income for four of five businesses.  As a percent of sales, third quarter 2010 segment operating income improved 80 basis points to 9.8 percent from 9 percent.  Net pension adjustment improved to an expense of $8 million from an expense of $72 million in the prior year period.  Unallocated corporate expenses totaled $46 million in the 2010 third quarter and $55 million in the 2009 third quarter.  

Shipbuilding third quarter 2010 sales increased 1 percent. Third quarter 2010 operating income declined 11 percent, and as a percent of sales totaled 6 percent compared with 6.8 percent in the third quarter of 2009.  The declines in operating income and rate are primarily due to lower performance for expeditionary warfare programs, partially offset by milestone incentives on the LPD program.

Shipbuilding ($ millions)

 
 

Third Quarter

 

Nine Months

 
 

2010

 

2009

 

% Change

 

2010

 

2009

 

% Change

 

Sales

$ 1,670

 

$ 1,650

 

1.2%

 

$ 4,989

 

$ 4,549

 

9.7%

 

Operating income

101

 

113

 

(10.6%)

 

191

 

211

 

(9.5%)

 

as % of sales

6.0%

 

6.8%

     

3.8%

 

4.6%

     
                         

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Greece Wants EU Funding to Tackle Migrant Influx

Greece will ask the European Union for about 700 million euros to build infrastructure to shelter the hundreds of refugees and migrants arriving on its shores daily, the government said on Thursday.

Asia-Europe Box Rates Soar Again

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped 29 percent to $763 per 20-foot container (TEU) this week data from

G E Shipping delivers “Jag Aakash” to Buyers

The Great Eastern Shipping Company Ltd. delivered the new building Kamsarmax Dry Bulk Carrier “Jag Aakash” (81,600 dwt) to the buyers.  The vessel was contracted for sale in August 2015.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3585 sec (3 req/sec)