Summary
Northrop Grumman Corporation reported solid financial results for the third quarter and the first nine months of 2010. Total sales and service revenues increased year-over-year, driven by growth in key segments like Aerospace Systems, Electronic Systems, and Technical Services. Operating income also saw a healthy rise, reflecting improved performance and cost management. The company demonstrated strong operational efficiency, with margins expanding in several segments. Significant strategic developments include the announcement of exploring alternatives for the Shipbuilding segment, including a potential spin-off, and the consolidation of Gulf Coast shipbuilding operations. The company maintained a robust balance sheet with substantial liquidity. Shareholder returns were supported by an increased quarterly dividend and significant share repurchases. Management also highlighted a favorable IRS settlement that provided a significant tax benefit. Looking ahead, while acknowledging potential impacts from evolving U.S. government budget priorities and acquisition reforms, Northrop Grumman remains confident in its ability to secure future business due to its strong position in critical defense and government technology programs.
Financial Highlights
47 data points| Revenue | $7.07B |
| Cost of Revenue | $2.92B |
| Gross Profit | $4.15B |
| Operating Income | $723.00M |
| Net Income | $497.00M |
| EPS (Basic) | $1.69 |
| EPS (Diluted) | $1.67 |
| Shares Outstanding (Basic) | 293.50M |
| Shares Outstanding (Diluted) | 297.60M |
Key Highlights
- 1Total sales and service revenues for the nine months ended September 30, 2010, increased to $26.15 billion, up from $24.83 billion in the same period of 2009.
- 2Operating income for the nine months ended September 30, 2010, rose to $2.28 billion, compared to $1.85 billion in the prior year.
- 3The company announced plans to consolidate its Gulf Coast shipbuilding operations and is exploring strategic alternatives for its Shipbuilding segment, including a potential spin-off.
- 4Net cash provided by operating activities for the nine months was $1.07 billion.
- 5Diluted earnings per share from continuing operations for the nine months increased to $5.49, up from $3.67 in the prior year.
- 6Northrop Grumman repurchased 17.8 million common shares for $1.1 billion during the nine months ended September 30, 2010, and increased its quarterly dividend.
- 7A significant IRS settlement resulted in net tax benefits of approximately $296 million in the second quarter of 2010.