Northrop Grumman sales down in info system sector
Northrop Grumman Corp.’s Information Systems segment had an 8 percent decline in sales for the third quarter of 2011, compared to 2010, the company reported Oct. 26.
Sales declined because of a lower volume of business for defense systems and civil systems programs. However, the decline was partially offset by a higher volume for intelligence systems programs.
The defense contractor faced the decreases in defense systems area, due to reduced funding for existing programs and by completing work in various programs in the third quarter. The volume of sales in its civil systems was reduced by the sale of the San Diego County outsourcing contract, which contributed $32 million in sales during the third quarter of 2010.
Overall, Northrop Grumman had $6.6 billion in sales for the third quarter of 2011 and $7.8 billion in new business awards. The company also reported its earnings from continuing operations increased 16 percent to $520 million, from $448 million in the third quarter of 2010.
“Superior operating performance in our businesses drove higher operating income, earnings, cash and a strong book-to-bill ratio for the quarter,” said Wes Bush, chairman, CEO, and president of Northrop Grumman. “The combination of performance and share repurchases continues to produce strong earnings per share growth despite top line pressures."
Northrop Grumman repurchased 28.4 million shares for $1.6 billion during the first nine months of the year.
Northrop Grumman, of Falls Church, Va., ranks No. 2 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.
About the Author
Matthew Weigelt is a former FCW senior writer who covered acquisition and procurement.