Northrop Grumman Q3 revenue increases 4%

Defense contractor Northrop Grumman has reported a 4% decline in net income to $487m for the third quarter 2009, compared to $509m in the same period last year. Revenue was up 4% at $8.73 billion.

Operating profit declined 15% to $655m during the quarter compared to $771m in the same period last year. Diluted EPS increased to $1.52 compared to $1.50 a year ago. The company reported new business worth $10 billion, total backlog of $71.5 billion and cash from operations of $544m. It repurchased 4.7 million shares during the quarter.

It said information systems revenue grew 4% to $2.51 billion, while aerospace systems revenue grew 5% to $2.53 billion. Electronic systems revenue grew 2% to $1.84 billion, while shipbuilding revenue increased 14% to $1.65 billion. Technical services revenue increased 4% to $692m.

During the quarter, the company opened a new Cyber Security Operations Center in Maryland to provide security monitoring for more than 105,000 clients and 10,000 servers. It also announced that Ronald D. Sugar, chairman and chief executive since 2003, is planning to retire in June 2010. The company appointed Wesley G. Bush as chief executive and president, and Lewis W. Coleman as non-executive chairman, both positions effective January 1, 2010.

Ronald D Sugar, chairman and chief executive at Northrop Grumman, said: "This was another solid quarter for Northrop Grumman, continuing our focus on managing risk, improving performance and driving growth. Based on this quarter's results we are raising our guidance for 2009 earnings per share to $5.00 to $5.15 per share."

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