Northrop Grumman Profit Up 8 PercentBy Reuters - | Posted 2008-07-29 Print
The U.S. No. 3 defense contractor, Northrup Grumman, behind Lockheed Martin and Boeing narrowly beat analysts' average estimate, and said it was on track to hit its full-year profit forecast.
NEW YORK (Reuters) - Northrop Grumman Corp (NOC.N: Quote, Profile, Research, Stock Buzz) said on Tuesday quarterly profit rose 8 percent, as higher sales of its military equipment were helped by a one-time gain from the sale of a business.
The U.S. No. 3 defense contractor behind Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) and Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) narrowly beat analysts' average estimate, and said it was on track to hit its full-year profit forecast.
The company, which makes bombers, warships and a range of military electronics, reported second-quarter net profit of $495 million, or $1.44 per share, compared with $460 million, or $1.31 per share, in the year-ago quarter.
Profit included a $58 million gain from the sale of its electro-optical systems business and $16 million of tax benefits after a settlement with U.S. federal tax authorities relating to tax payments for the years 2001 through 2003.
Excluding one-time items and discontinued operations, Northrop's earnings were $1.40 per share, while Wall Street was expecting $1.39, according to Reuters Estimates.
Sales rose 10 percent to $8.6 billion, above analysts' average forecast of $8.3 billion, helped by increases in each of its four main units: aerospace, electronics, shipbuilding, and information and services.
Northrop said it was on track to hit its full-year earnings forecast of $4.90 to $5.15 per share. Wall Street is expecting $5.12, on average.
The company said it continues to carry the $1.5 billion refueling tanker contract award it won from the U.S. Air Force in February in its backlog of work to be performed.
The contract, a prelude to a $35 billion program to replace the United States' mid-air refueling fleet, was protested by losing bidder Boeing, and is now set to be reopened by the Defense Department. Northrop is teamed with European aerospace company EADS (EAD.PA: Quote, Profile, Research, Stock Buzz) in its bid to retain the contract.
(Reporting by Bill Rigby, editing by Dave Zimmerman)
© Thomson Reuters 2008 All rights reserved
IT Solutions Builder TOP IT RESOURCES TO MOVE YOUR BUSINESS FORWARD
Which topic are you interested in?
What is your company size?
What is your job title?
What is your job function?
Searching our resource database to find your matches...