Northrop Grumman Corporation Announces Unaudited Consolidated Earnings Results for Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the Full Year 2017
January 26, 2017 at 06:46 am
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Northrop Grumman Corporation announced unaudited consolidated earnings results for fourth quarter and full year ended December 31, 2016. For the quarter, the company reported sales increased 12% to $6.4 billion from $5.7 billion in the fourth quarter of 2015. Net earnings increased 14% to $525 million, or $2.96 per diluted share, from $459 million, or $2.49 per diluted share, in the fourth quarter of 2015. Operating income was $831 million compared to $689 million a year ago. Earnings before income taxes were $748 million compared to $621 million a year ago. Pension-adjusted operating income was $749 million, or $2.66 per diluted share compared to $602 million, or $2.18 per diluted share a year ago. Net cash provided by operating activities was $1,531 million compared to $1,633 million a year ago. Capital expenditures were $312 million compared to $137 million a year ago.
For 2016, net earnings increased 11% to $2.2 billion, or $12.19 per diluted share on sales of $24.508 billion, from $2.0 billion, or $10.39 per diluted share on sales of $23.526 billion in 2015. Operating income was $3,193 million compared to $3,076 million a year ago. Earnings before income taxes were $2,923 million compared to $2,790 million a year ago. Pension-adjusted operating income was $2,877 million, or $11.05 per diluted share compared to $2,728 million, or $9.21 per diluted share a year ago. Net cash provided by operating activities was $2,813 million compared to $2,162 million a year ago. Capital expenditures were $920 million compared to $471 million a year ago.
The company provided earnings guidance for the full year 2017. For the period, the company expects sales of $25 billion, operating margin of mid 12%, effective tax rate of 29.5%, diluted EPS of $11.30 to $11.60, Capital expenditures of $900 million and free cash flow of $1,800 million to $2,000 million.
Northrop Grumman Corporation is one of the American leaders of the design, manufacturing and marketing of defense systems and equipments. Net sales break down by family of products as follows:
- space systems (35.5%);
- mission systems (27.7%): radar, sensors, air traffic control systems, communications, surveillance, etc. The group also offers information and command systems;
- aeronautics systems (27.5%): autonomous and manned aircraft systems, space vehicles, surveillance and reconnaissance systems, command and control systems, etc.;
- defense systems (14.9%): weapons, combat management systems, missile systems, etc.
Net sales break down geographically as follows: the United States (87.5%), Europe (6.2%), Asia/Pacific (4%) and other (2.3%).
Northrop Grumman Corporation Announces Unaudited Consolidated Earnings Results for Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the Full Year 2017