Tags: US | Earns | Northrop | Grumman

Northrop Grumman Profit Soars, Raises Year View

Thursday, 29 Jul 2010 10:44 AM

Defense contractor Northrop Grumman Corp. said Thursday its second-quarter earnings nearly doubled, partly due to a tax benefit, and it raised its outlook for the year.

Northrop shares rose 63 cents to $59.02 in morning trading.

The company reported net income of $711 million, or $2.34 per share, for the three months ended June 30 compared with $394 million, or $1.21 per share, a year earlier.

The 2010 second quarter included a tax benefit of $296 million, or 97 cents per share. That was partially offset by a pretax charge of $113 million, or 24 cents per share, related to the company's consolidation of its Gulf Coast shipbuilding operations.

The net impact of the tax benefit and the consolidation charge increased earnings by 73 cents per share.

Revenue rose 3 percent to $8.83 billion from $8.55 billion a year ago.

Analysts polled by Thomson Reuters, who tend to exclude one-time items from their estimates, expected earnings of $2.19 per share on revenue of $8.61 billion.

The company's technical services segment posted the biggest quarterly sales growth — 14 percent higher than a year ago. Sales in its information systems unit fell 1 percent — the only segment with lower sales in the period.

For the full year, the company said it expects a challenging environment ahead but it raised its expectations. Northrop said the higher forecast reflects the benefit of the second quarter tax settlement, the consolidation related charge in shipbuilding and an improved overall performance.

It now expects earnings from continuing operations of $6.60 to $6.80 per share on revenue of about $34.8 billion. The company previously predicted earnings from continuing operations of $5.75 to $6 per share on revenue of $34.5 billion.

Analysts expected $6.72 a share on revenue of $34.8 billion for the year.

Northrop shares rose 63 cents to $59.02 in morning trading.

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Defense contractor Northrop Grumman Corp. said Thursday its second-quarter earnings nearly doubled, partly due to a tax benefit, and it raised its outlook for the year.Northrop shares rose 63 cents to $59.02 in morning trading.The company reported net income of $711...
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2010-44-29
Thursday, 29 Jul 2010 10:44 AM
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