Northrop 2nd quarter down as IS sales slip

Northrop Grumman Corp. today reported a mixed second quarter of fiscal 2010 as electronic and information systems sales slipped compared to 2009.

Northrop sales of information systems slipped 1.3 percent to $2.123 billion in the quarter compared with $2.151 billion in 2009, according to the corporation’s report. During the quarter, sales to civilian agencies and intelligence programs also fell slightly compared to 2009. But those decreases were offset by increased sales to defense programs, the report stated.

For the first six months of 2010, Northrop reports information systems sales total $4.187 billion, 1.3 percent lower than the first six months of 2009.

However, sales of its electronic systems increased 0.9 percent to $1.984 billion compared with 2009. The corporation attributed the higher sales to targeting systems programs. Sales for the first half of the year have reached $3.866 billion, for a 3 percent increase compared with the first half of 2009.

Overall, the company's second quarter earnings from continuing operations increased to $711 million from $368 million in the corresponding quarter of 2009, the report states.

Wes Bush, Northrop president and chief executive officer, called the results solid. "Overall, we’re pleased with our second quarter results,” he said in a statement.

“Some of the quarter's financial results came from executives' review of company operations, as they sought ways to make it more streamlined," he said. “Our focus on performance improvement is generating positive results across all our businesses.'

Looking ahead, Bush said Northrop Grumman doesn’t see a letup in the challenges of today’s tough economy.

Northrop Grumman, of Los Angeles, ranks No. 2 on the Washington Technology 2010 Top 100 list of the largest federal government contractors.