Northrop sees second-quarter revenue fall

Northrop Grumman's second-quarter revenue fell nearly $300 million but profitability improved.

Northrop Grumman Corp. saw its second-quarter revenue fall by nearly $300 million, but the company says earning per share rose and its cash flow saw a strong rebound from last year’s negative numbers.

The company said in its quarterly report that revenue for the quarter was $6.3 billion compared to $6.6 billion last year. Net earnings also dropped to $480 million from $520 million. But earnings per share rose to $1.88 this year compared to $1.81 in the second quarter last year. 

The company raised is earnings guidance for the year to $7.05 to $7.25 per share.

The company’s information systems business saw its sales decline 8.6 percent for the quarter to $1.856 billion from $2.031 billion last year. But operating income for the group rose to $202 million in the second quarter of 2012, compared to $189 million last year.

The decline in revenue for the group was attributed to lower sales volume to several factors:

  • The end of the Joint Tactical Radio System Airborne, Maritime and Fixed program.
  • The winding down of the F-22 program.
  • Lost revenue because of the sale of the San Diego County outsourcing contract.
  • Lower sales volume for intelligence systems as programs were completed.

The company said that the improved profitability for the information systems group was due to improved performance in the civil business, which offset the impact of lower sales volume.