Summary
Northrop Grumman Corporation's first quarter 2012 results show a decline in total sales to $6.2 billion from $6.7 billion in the prior year's comparable period, an 8% decrease. This decline was attributed to reduced volume across all four business segments, with Aerospace Systems and Information Systems experiencing the most significant drops. Despite the sales decrease, operating income saw a modest decline of 2% to $796 million, and the operating margin rate improved to 12.8% from 12.0% in Q1 2011, reflecting performance improvements and cost reduction initiatives. Financially, the company reported net earnings of $506 million for the quarter, down from $530 million in the prior year, with basic EPS at $2.00 compared to $1.82 in Q1 2011. Cash flow from operations was negative $105 million, a decrease from positive $112 million in the prior year, largely due to increased working capital requirements. The company maintained a strong backlog of $39.1 billion at the end of the quarter, indicating continued demand for its products and services.
Financial Highlights
46 data points| Revenue | $6.20B |
| Cost of Revenue | $2.53B |
| Gross Profit | $3.67B |
| Operating Income | $796.00M |
| Net Income | $506.00M |
| EPS (Basic) | $2.00 |
| EPS (Diluted) | $1.96 |
| Shares Outstanding (Basic) | 253.10M |
| Shares Outstanding (Diluted) | 258.00M |
Key Highlights
- 1Total sales decreased by 8% to $6.2 billion in Q1 2012 compared to Q1 2011, primarily due to lower sales volume across all segments.
- 2Operating income decreased by 2% to $796 million, but operating margin rate improved to 12.8% from 12.0% due to performance improvements and cost reduction initiatives.
- 3Net earnings were $506 million, resulting in basic EPS of $2.00, an increase from $1.82 in the prior year's quarter.
- 4Cash used in operating activities was $105 million, a notable decrease from cash provided by operations of $112 million in Q1 2011, driven by increased working capital needs.
- 5The company successfully completed the spin-off of its shipbuilding business in March 2011, which generated a $1.4 billion cash contribution.
- 6Total backlog remained strong at $39.1 billion as of March 31, 2012, providing visibility for future revenues.
- 7The company repurchased approximately 4.4 million shares of common stock during the quarter, returning capital to shareholders.