Northrop Grumman Corporation announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2014. The company reported fourth quarter 2014 net earnings of $506 million, or $2.48 per diluted share, compared to $478 million, or $2.12 per diluted share, in the fourth quarter of 2013. Operating income was $762 million against $768 million a year ago. Net cash provided by operating activities was $1,490 million against $1,204 million a year ago. Pension-adjusted operating income was $693 million against $725 million a year ago. Pension-adjusted diluted EPS was $2.26 against $2.00 a year ago. Capital expenditures were $276 million against $186 million a year ago. Earnings before income taxes was $701 million against $707 million a year ago. Sales were $6,108 million against $6,157 million a year ago.

For 2014, net earnings totaled $2.1 billion, or $9.75 per diluted share, compared to $2.0 billion, or $8.35 per diluted share in 2013. Operating income was $3,196 million against $3,123 million a year ago. Net cash provided by operating activities was $2,593 million against $2,483 million a year ago. Pension-adjusted operating income was $2,927 million against $2,955 million a year ago. Pension-adjusted diluted EPS was $8.93 against $7.88 a year ago. Capital expenditures were $561 million against $364 million a year ago. Earnings before income taxes was $2,937 million against $2,863 million a year ago. The improvements in operating income reflects a higher net FAS/CAS pension adjustment and higher segment operating income, partially offset by higher unallocated corporate expense. Sales were $23,979 million against $24,661 million a year ago.

For 2015, the company expects sales of $23,400 to $23,800 million, operating margin of mid-12%, diluted EPS of $9.20 to $9.50, cash provided by operating activities before after-tax discretionary pension contributions of $2,400 to $2,700 million and free cash flow before after-tax discretionary pension contributions of $1,700 to $2,000 million.