10-KPeriod: FY2008

NORTHROP GRUMMAN CORP /DE/ Annual Report, Year Ended Dec 31, 2008

Filed February 10, 2009For Securities:NOC

Summary

Northrop Grumman Corporation (NOC) reported significant financial events and operational performance in its 2008 10-K filing. Despite a reported net loss of $1.26 billion, driven largely by a substantial $3.1 billion non-cash goodwill impairment charge related to market conditions affecting its Shipbuilding and Space Technology segments, the company achieved record sales of $33.9 billion, a 6% increase year-over-year. Cash from operations also reached a record $3.2 billion. The company maintained a strong backlog of $78.1 billion, boosted by record contract awards of $48.3 billion. Key financial actions included significant share repurchases totaling $1.6 billion, and an increase in the quarterly common stock dividend from $0.37 to $0.40 per share. The company also completed the conversion and redemption of its Series B Convertible Preferred Stock, issuing approximately 6.4 million shares of common stock. Looking ahead, Northrop Grumman anticipates sales of approximately $34.5 billion in 2009, though it acknowledges economic uncertainties and potential impacts on future defense spending.

Financial Statements
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Key Highlights

  • 1Record sales of $33.9 billion, a 6% increase year-over-year.
  • 2Significant $3.1 billion non-cash goodwill impairment charge impacting Shipbuilding and Space Technology segments.
  • 3Record cash from operations of $3.2 billion.
  • 4Strong total backlog of $78.1 billion, driven by record contract awards of $48.3 billion.
  • 5Repurchased $1.6 billion of common stock.
  • 6Increased quarterly common stock dividend from $0.37 to $0.40 per share.
  • 7Completed redemption of 3.5 million shares of mandatorily redeemable convertible preferred stock.

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