Summary
Northrop Grumman Corporation's 2013 10-K report highlights a year of stable performance, underscored by its primary reliance on U.S. government contracts, which constituted over 86% of its revenue. The company operates across four segments: Aerospace Systems, Electronic Systems, Information Systems, and Technical Services, delivering a wide range of defense and security solutions. Despite ongoing U.S. government budget pressures and sequestration, Northrop Grumman managed its operations effectively, with total sales slightly declining to $24.66 billion from $25.22 billion in the prior year. Operating income remained strong at $3.12 billion. The company continued its commitment to shareholder returns through dividends and share repurchases, authorized a new $4.0 billion repurchase program, and maintained a healthy free cash flow from continuing operations of $2.12 billion. Key risk factors identified include heavy dependence on U.S. government funding, potential contract terminations, and regulatory compliance.
Financial Highlights
51 data points| Revenue | $24.66B |
| Cost of Revenue | $10.62B |
| Gross Profit | $14.04B |
| R&D Expenses | $507.00M |
| Operating Income | $3.12B |
| Net Income | $1.95B |
| EPS (Basic) | $8.50 |
| EPS (Diluted) | $8.35 |
| Shares Outstanding (Basic) | 229.60M |
| Shares Outstanding (Diluted) | 233.90M |
Key Highlights
- 1Significant reliance on U.S. Government contracts, accounting for over 86% of total revenue in 2013.
- 2Total sales slightly decreased to $24.66 billion in 2013 from $25.22 billion in 2012, reflecting ongoing U.S. defense budget pressures.
- 3Operating income remained robust at $3.12 billion for 2013, with an operating margin rate of 12.7%.
- 4The company initiated a new share repurchase program authorizing up to $4.0 billion of common stock.
- 5Free cash flow from continuing operations was $2.12 billion in 2013.
- 6Northrop Grumman operates through four main segments: Aerospace Systems, Electronic Systems, Information Systems, and Technical Services.
- 7The company is subject to significant risks related to U.S. government spending, program funding, and regulatory compliance.