Northrop Grumman (NYSE: NOC) stated an 8 percent year-over-year growth in space segment sales for the second quarter to $2.98 billion with the increase partially offsetting lower revenues at the company’s three other core business sectors.
April-June sales were $8.80 billion, compared to $9.15 billion for the same period last year, and Northrop said Thursday the 4 percent decline reflects macroeconomic headwinds due to a tight labor market along with longer material lead times.
Chair, President and CEO Kathy Warden, told investors in a conference call Thursday that supply chain delays affected the timing of sales
Revenue in the company’s aeronautics systems segment fell 13 percent, defense systems was down 9 percent and mission systems dipped 3 percent.
Net earnings for the quarter amounted to $946 million, or $6.06 per diluted share, compared to the $1.04 billion, or $6.42 per diluted share, a year earlier.
Kathy Warden, chair, president and CEO of Northrop, told investors in a conference call Thursday that supply chain delays affected the timing of sales and noted book-to-bill ratio above one during the quarter, leading to a 6% increase in backlog that now stands at $80 billion.
“In the quarter, we did experience certain challenges from the broader macroeconomic environment, including a tight labor market and supply chain delays, which impacted sales timing,” Warden, a seven-time Wash100 Award, said.
The company affirmed its guidance for the 2022 fiscal year and expects sales of between $36.20 billion to $36.60 billion.
Northrop shares opened at $438.39 on Thursday, lower than its previous close of $445.81.