Northrop Grumman sees decline in IT sales

Northrop Grumman Corp.’s information systems division was hit was lower sale in all three of its business areas, leading to a 9 percent decline in sales so far in 2012.

The company had $1.84 billion in information system sales for the first quarter of 2012. A year ago, sales reached $2.03 billion, according to a financial report released April 25.

For defense systems, agencies had less money to spend on programs due to in-theater troop drawdowns overseas. Officials also ended a program and the company completed several programs, the company said.

In its civil business, sales declined because of the sale of the San Diego County outsourcing contract. It contributed sales of $30 million in the first quarter of 2011. Also, the company finished the Enterprise Network Management contract.

For intelligence systems, there were lower sales across several programs, including Counter Narco-Terrorism Programs and Operations, the company said.

Overall though, Northrop Grumman's first quarter net earnings totaled $506 million compared with $530 million in the first quarter of 2011.

Northrop Grumman had $6.2 billion in sales across all divisions. It had total backlog of $39.1 billion and $580 million in new business awards.

“We are off to a strong start for the year in a challenging environment,” said Wes Bush, chairman, chief executive officer and president.

The quarter’s results show the company is doing its work well while reducing costs and become more efficient in how it operates, Bush said.

Northrop Grumman, of Falls Church, Va., ranked No. 2 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

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