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 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Fifth Jackup Contract for Keppel from Gulf Drilling

Keppel FELS Limited, a wholly owned subsidiary of Keppel Offshore & Marine, has secured a contract from Gulf Drilling International Ltd. of Qatar to build a

Scorpio Tankers Receive 7 More Newbuildings

Scorpio Tankers Inc. say it has recently taken delivery of seven newbuilding vessels as follows: STI Madison and STI Park, LR2 product tankers, were delivered

Greek Owners CPP Charter Out Three Tankships

Capital Product Partners L.P. (CPP) an international diversified shipping company, says it has secured time charter employment for the M/T ‘Avax’, M/T ‘Agisilaos’ and M/T ‘Alkiviadis’.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1461 sec (7 req/sec)