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Northrop Grumman (NYSE: NOC).

Northrop Grumman is a leading global security company providing innovative systems, products and solutions in autonomous systems, cyber, C4ISR, strike, and logistics and modernization to customers worldwide.

Northrop Grumman - Northrop Grumman Completes Orbital ATK Acquisition, Blake Larson Elected to Lead New Innovation Systems Sector - 6/6/2018

Northrop Grumman Corporation (NYSE: NOC) today announced it has closed the acquisition of Orbital ATK Inc. ("Orbital ATK"), a global leader in aerospace and defense technologies. Orbital ATK is now Northrop Grumman Innovation Systems, a new, fourth business sector.

Northrop Grumman's board of directors has elected Blake Larson as corporate vice president and president of Northrop Grumman Innovation Systems, reporting to Kathy Warden, Northrop Grumman's president and chief operating officer. Larson previously served as the chief operating officer of Orbital ATK.

"We welcome Orbital ATK's talented employees," said Wes Bush, chairman and chief executive officer, Northrop Grumman. "We are delighted to have them join the Northrop Grumman team, and we are very excited about the value creation our combination represents for our customers, shareholders and employees. Together, through our leading technologies and innovation-focused culture, we look forward to developing enhanced mission capabilities and more competitive offerings in critical global security domains," said Bush.

"I am also excited to welcome Blake to our leadership team," Bush added. "He is a proven leader and I know that he will continue to focus on performance and innovation as the president of our new Innovation Systems sector."

Northrop Grumman is a leading global security company providing innovative systems, products and solutions to government and commercial customers worldwide, offering an extraordinary portfolio of capabilities and technologies for applications from undersea to outer space and into cyberspace.

Logistics and Modernization

Northrop Grumman is a leading provider of logistics solutions supporting the full lifecycle of platforms and systems for global defense and federal-civil customers, delivering innovative, technology-driven solutions and services to enable cost-effective improvements for customer mission effectiveness.

Autonomous Systems

Northrop Grumman is a premier provider of autonomous systems on land, at sea, in the air, and in space. These unmanned aircraft, satellites and space systems, and advanced technologies are critical to our national security. Autonomous systems operate in areas and environments where manned vehicles cannot, allowing for prolonged missions, and helping reduce risk to human lives.


Northrop Grumman is a leading provider of C4ISR systems that are the backbone of operations and of decision making. Our systems provide situational awareness from planning to execution. We deliver analysis systems through to advanced communications payloads and integrated solutions that support the U.S. and allied forces across the globe.


As a leader in integrated strike systems, Northrop Grumman brings world-class capabilities in system design, systems engineering, manufacturing, and sustainment. The ability to project power, strategically, anywhere in the world is an essential tenet of the U.S. military. Our platforms like the B-2 Spirit stealth bomber and the bomber for the future, the B-21 Raider, provide a powerful projection of force.


Northrop Grumman has been battling cyber threats for more than 30 years and, through aggressive technology investments in key research areas such as identity management, situational awareness, modeling and simulation, cloud security, and supply chain, has a deep understanding of the breadth and complexity of cyber. It is embedded in everything we do.

Our People and Culture

With more than 60,000 employees in all 50 states and in more than 25 countries, we strive to attract and retain the best employees by providing an inclusive work environment wherein employees are receptive to diverse ideas, perspectives and talents to help solve our toughest customer challenges: to develop and maintain some of the most technically sophisticated products, programs and services in the world.

Northrop Grumman Second Quarter 2019 Financial Results

Net Awards Total $13.5 Billion; Book-to-Bill of 1.6

* Backlog Increases 10 Percent to $63 Billion

* Sales Increase 19 Percent to $8.5 Billion

* Operating Income Increases 16 Percent; Segment Operating Incomel Increases 26 Percent

* EPS Increase 12 Percent to $5.06

* Cash from Operations Totals $1.6 Billion; Free Cash Flowl Totals $1.4 Billion

* 2019 MTM-adjusted EPS1 Guidance Increased to $19.30 to $19.55

FALLS CHURCH, Va. - July 24, 2019 - Northrop Grumman Corporation (NYSE: NOC) reported second quarter 2019 sales increased 19 percent to $8.5 billion from $7.1 billion in the second quarter of 2018. Second quarter 2019 net earnings increased 9 percent to $861 million from $789 million in the second quarter of 2018, and diluted earnings per share increased 12 percent to $5.06 from $4.50, reflecting net earnings growth and a 3 percent reduction in weighted-average diluted shares outstanding.

"We had a strong second quarter fueled by new business captures, sales growth and operating performance," said Kathy Warden, chief executive officer and president. "Our portfolio is well aligned to our customers' needs and we see continued demand for our products, as evidenced by our growing sales and backlog. Our continued focus on profitable growth, operational efficiency and agility is generating value for our shareholders."

Northrop Grumman Second Quarter 2019 Financial Results


Second quarter 2019 sales increased $1.3 billion primarily due to the addition of a full quarter of Innovation Systems sales as well as higher sales at Mission Systems and Aerospace Systems.

Operating Income and Margin Rate

Second quarter 2019 operating income increased $129 million, or 16 percent, primarily due to a $199 million increase in segment operating income, partially offset by a $40 million increase in unallocated corporate expense, largely due to intangible asset amortization and PP&E step-up depreciation, and a $30 million decrease in net FAS (service)/CAS pension adjustment. Operating margin rate declined to 11.2 percent from 11.5 percent primarily due to higher intangible asset amortization and PP&E step-up depreciation, partially offset by improved segment performance.

Segment Operating Income and Margin Rate

Second quarter 2019 segment operating income increased $199 million, or 26 percent, due to higher operating income at all four sectors, including a full quarter of operating income from Innovation Systems. Segment operating margin rate increased to 11.6 percent from 10.9 percent largely due to improved performance at Mission Systems and Technology Services. In addition, segment operating income and margin rate benefited from cost synergies realized in connection with the 2018 acquisition of Orbital ATK.

Federal and Foreign Income Taxes

The second quarter 2019 effective tax rate decreased to 16.2 percent from 19.2 percent in the second quarter of 2018 primarily due to higher research credits.

Net Earnings

Second quarter 2019 net earnings increased $72 million primarily due to higher operating income and a lower effective tax rate, partially offset by a $58 million decrease in FAS (non-service) pension benefit and a $26 million decrease in other, net, principally due to lower interest income.

Operating Cash Flows

Second quarter 2019 cash provided by operating activities increased $732 million to $1.6 billion principally due to improved trade working capital, including recovery of receivables delayed by the ERP conversion discussed in the first quarter of 2019, and higher net earnings. After capital expenditures of $252 million, second quarter 2019 free cash flow was $1.4 billion.

Year to date 2019 cash provided by operating activities increased $56 million principally due to higher net earnings, partially offset by an increase in trade working capital.

Awards and Backlog

Second quarter and year to date 2019 net awards totaled $13.5 billion and $25.8 billion, respectively, and backlog increased to $63.0 billion as of June 30, 2019. Significant new awards in the second quarter include $4.1 billion for the F-35 program, $3.6 billion to deliver an additional 24 E-2D Advance Hawkeye aircraft and related equipment to the U.S. Navy, $843 million for space restricted programs, $316 million for the Global Hawk program and $265 million for the Intermediate Range Conventional Prompt Strike hypersonic program.
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Title Annotation:Leading Companies in the Industry
Publication:US Armaments
Date:Aug 14, 2019
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