NORTHROP GRUMMAN CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2010

Summary

Northrop Grumman Corporation (NOC) reported a strong first quarter for 2010, with total sales and service revenues increasing by 8.5% to $8.61 billion compared to the same period in 2009. This growth was primarily driven by a significant 21% increase in product sales, particularly within the Aerospace Systems and Shipbuilding segments. Net earnings rose to $469 million, or $1.53 per diluted share, a notable improvement from $389 million, or $1.17 per diluted share, in the prior year. The company's operating income also saw a healthy increase, up 23.5% to $765 million. This demonstrates effective cost management and operational improvements across key segments. Despite a decrease in service revenues, the overall financial performance indicates a robust business, supported by a substantial backlog of $67.5 billion, providing good visibility into future revenue streams. Investors can take comfort in the company's ability to grow revenue and profitability in a challenging economic environment, along with a continued focus on returning capital to shareholders through share repurchases and dividends.

Key Highlights

• 1Total sales and service revenues increased by 8.5% to $8.61 billion in Q1 2010 compared to Q1 2009.
• 2Net earnings rose to $469 million ($1.53 per diluted share) from $389 million ($1.17 per diluted share) year-over-year.
• 3Operating income increased by 23.5% to $765 million, indicating improved profitability.
• 4Product sales saw a significant 21% increase, driven by growth in Aerospace Systems and Shipbuilding.
• 5The company's backlog remained strong at $67.5 billion as of March 31, 2010, providing future revenue visibility.
• 6Diluted earnings per share from continuing operations were $1.51, up from $1.10 in the prior year.
• 7Share repurchases amounted to $507 million in the first quarter of 2010, demonstrating a commitment to returning capital to shareholders.

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