Northrop Grumman Q2 profits up 8 per cent, at $495 million

Los Angeles, USA: Giant American defence contractor, Northrop Grumman Corp, which makes military aircraft, ships and electronic products, said Tuesday its second-quarter profit were up 8 per cent even as sales went up 10 per cent. The upbeat results come on the back of a strong performance in the shipbuilding and aerospace segments.

The Los Angeles-based company reported net income of $495 million in the quarter ending 30 June, as compared to earnings of $460 million in the year-ago period.

Revenues were up nearly 10 per cent, to $8.63 billion, from $7.88 billion, beating Wall Street forecasts of $8.28 billion. The shipbuilding segment reported double-digit growth.

The company also said revenue guidance across its four business divisions will remain "unchanged."

The company received a total of $7.5 billion in new business orders in the quarter, with total backlog of orders reaching $66.9 billion, as of 30 June.

Shipbuilding achieved double-digit growth due largely to higher volume for expeditionary warfare, aircraft carrier and fleet support programmes, including its San Antonio class of amphibious transport dock ships and its USS Enterprise, a nuclear-powered aircraft carrier.

Electronic unit revenue rose 3 per cent, to $1.68 billion, with higher sales of combat avionics and airborne surveillance, which helped to partially offset lower volume of the Space-based Infrared System, a space-based missile warning system.

Sales in the company's aerospace sector, which includes its integrated systems and space technology, rose 8 per cent, to $2.48 billion, due to high demand for its Global Hawk, an unmanned aerial vehicle and the EA-6B Prowler aircraft.