Summary
Northrop Grumman Corporation reported total sales of $6.3 billion for the second quarter of 2012, a decrease of 4% year-over-year. Earnings from continuing operations were $480 million, or $1.88 per diluted share, compared to $520 million, or $1.81 per diluted share, in the same period last year. The company experienced a decline in sales across most segments, notably in Information Systems and Aerospace Systems, impacted by factors such as program changes and lower volume. Despite the revenue decrease, the company maintained a strong backlog of $41.5 billion. Management highlighted improved segment operating margin rates due to performance enhancements and cost reduction initiatives, particularly in Information Systems and Technical Services. The company also continued its capital return strategy, repurchasing shares and increasing its quarterly dividend, reflecting confidence in its financial position and future outlook amidst a challenging defense spending environment.
Financial Highlights
48 data points| Revenue | $6.27B |
| Cost of Revenue | $2.60B |
| Gross Profit | $3.67B |
| Operating Income | $774.00M |
| Net Income | $480.00M |
| EPS (Basic) | $1.91 |
| EPS (Diluted) | $1.88 |
| Shares Outstanding (Basic) | 250.80M |
| Shares Outstanding (Diluted) | 254.70M |
Key Highlights
- 1Total sales for Q2 2012 were $6.3 billion, down 4% from $6.56 billion in Q2 2011.
- 2Earnings from continuing operations for Q2 2012 were $480 million ($1.88 diluted EPS), down from $520 million ($1.81 diluted EPS) in Q2 2011.
- 3Segment operating income was comparable at $782 million, with an improved segment operating margin rate of 12.5% compared to 12.0% in the prior year period.
- 4Total backlog stood at $41.5 billion as of June 30, 2012, an increase from $39.5 billion at the end of 2011.
- 5The company repurchased approximately 4.9 million shares for $297 million during the quarter.
- 6Northrop Grumman increased its quarterly dividend to $0.55 per share in May 2012.