Summary
Northrop Grumman Corporation (NOC) reported total sales of $6.104 billion for the first quarter of 2013, a slight decrease of 1.5% compared to $6.198 billion in the same period of 2012. Net earnings were $489 million, or $2.03 per diluted share, compared to $506 million, or $1.96 per diluted share, in the prior year. The company experienced a decrease in operating income to $759 million from $796 million, with the operating margin rate declining to 12.4% from 12.8%. Despite a challenging fiscal environment, particularly the impact of sequestration on defense budgets, the company's financial performance remained relatively stable, with improved cash flow from operations. The company's results were influenced by various factors including lower sales in the Information Systems segment and a decrease in net favorable adjustments across segments. However, strong performance in the Aerospace Systems segment, driven by increased unit deliveries and ramp-ups in key programs, partially offset these declines. Northrop Grumman continues to actively manage its capital through share repurchases and dividends, demonstrating a commitment to shareholder returns amidst ongoing defense budget uncertainties. Investors should monitor the evolving U.S. defense spending landscape, including the impact of sequestration and future budget proposals, as this will be a key factor in the company's future performance.
Financial Highlights
46 data points| Revenue | $6.10B |
| Cost of Revenue | $2.63B |
| Gross Profit | $3.47B |
| Operating Income | $759.00M |
| Net Income | $489.00M |
| EPS (Basic) | $2.07 |
| EPS (Diluted) | $2.03 |
| Shares Outstanding (Basic) | 236.40M |
| Shares Outstanding (Diluted) | 241.00M |
Key Highlights
- 1Total sales for Q1 2013 were $6.104 billion, a 1.5% decrease from $6.198 billion in Q1 2012.
- 2Net earnings for Q1 2013 were $489 million, or $2.03 per diluted share, up from $506 million, or $1.96 per diluted share, in Q1 2012.
- 3Operating income decreased to $759 million from $796 million in the prior year.
- 4The company reported net cash provided by operating activities of $1 million for Q1 2013, an improvement from $(105) million in Q1 2012.
- 5Information Systems segment sales decreased by 9% due to in-theater force reductions and lower funding levels.
- 6Aerospace Systems segment sales increased by 4% driven by higher unit deliveries and program ramp-ups.
- 7The company continued its share repurchase program, with $1.0 billion remaining authorization as of March 31, 2013.