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Northrop Grumman Reports Q4 Sales Increase 5% to $8-B |
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LOS ANGELES, Jan. 29, 2007/Satnews Daily/ ― Northrop Grumman Corporation (NYSE:NOC) has reported that fourth quarter 2006 income from continuing operations rose 37 percent to $457 million, or $1.29 per diluted share, from $334 million, or $0.93 per diluted share, in the fourth quarter of 2005.
Income from continuing operations for 2006 increased 13 percent to $1.6 billion, or $4.44 per diluted share, from $1.4 billion, or $3.83 per diluted share, in 2005. Sales for the 2006 fourth quarter increased 5 percent to $8 billion from $7.7 billion in the 2005 fourth quarter. Sales for 2006 totaled $30.1 billion and are comparable to 2005.
Cash from operations for the 2006 fourth quarter totaled $309 million compared with $660 million in the 2005 fourth quarter, and cash from operations for the year totaled $1.8 billion compared with $2.6 billion in 2005. Contract acquisitions in the 2006 fourth quarter increased 90 percent, to $12.2 billion. For all of 2006, contract acquisitions increased 58 percent to $38.8 billion, bringing funded backlog to $30.5 billion and total backlog to a record $61 billion at Dec. 31, 2006.
“Our focus on performance generated another strong quarter and our fourth consecutive year of double-digit growth in earnings per share. Together, our four businesses achieved solid double-digit growth in operating margin and outstanding cash generation, for both the quarter and the year” said Ronald D. Sugar, Northrop chairman and CEO. “Our focus on operating margin rate improvement resulted in an expansion of 80 basis points in operating margin rate in 2006 compared with 2005,” he added.
The company said it expects 2007 sales to range between $31 and $32 billion. Earnings per diluted share from continuing operations are expected to range between $4.80 and $5.05, and include estimated net pension income of approximately $70 million.
Northrop said fourth quarter 2006 income from continuing operations rose 37 percent to $457 million, or $1.29 per diluted share, from $334 million, or $0.93 per diluted share, for the same period of 2005. Fourth quarter 2006 sales rose 5 percent to $8 billion compared with $7.7 billion in the 2005 fourth quarter.
Northrop admitted its Aerospace unit fourth quarter 2006 sales declined 2 percent from the prior year period due to lower volume in Integrated Systems, partially offset by higher sales in Space Technology.
Integrated Systems sales declined 5 percent primarily due to lower volume for the EA-6B Prowler, E-8C Joint STARS and E-2D Advanced Hawkeye programs. Lower volume for these programs was partially offset by higher volume for the F-35 Lightning II program. Space Technology sales increased 4 percent, primarily due to higher volume for the Space Radar, James Webb Telescope, and restricted programs.
Aerospace fourth quarter 2006 operating margin increased 4 percent from the prior year period and includes higher operating margin for Space Technology. Integrated Systems operating margin is comparable to the prior year period. Space Technology operating margin increased 11 percent due to performance in Civil Space and restricted programs.
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