FALLS CHURCH, Va. - - Northrop Grumman Corporation (NYSE: NOC) reported second quarter 2023 sales increased 9 percent to $9.6 billion, as compared with $8.8 billion in the second quarter of 2022.

* Net Awards of $10.9 billion; book to bill of 1.14

* Sales increased 9 percent to $9.6 billion

* Diluted earnings per share of $5.34

* Operating cash flow of $919 million

* Company increases 2023 sales guidance by $400 million and low end of EPS guidance

* range by $0.20

Second quarter 2023 sales reflect continued strong demand and improving labor availability and supplier deliveries. Second quarter 2023 net earnings totaled $812 million, or $5.34 per diluted share, as compared with $946 million, or $6.06 per diluted share, in the second quarter of 2022. Net earnings were reduced by $160 million, or $1.01 per diluted share, as a result of lower net FAS/CAS pension income.

'Strong global demand for our products, increased supply chain deliveries and our continued success in hiring and retaining talent drove second quarter growth of nine percent,' said Kathy Warden, chair, chief executive officer and president. 'With backlog more than double annual sales and a robust U.S. and international outlook for our programs, we have increased our full year sales guidance by $400 million. We are driving affordability measures to partially offset the impacts of inflation for our customers and we expect margins to expand as macroeconomic headwinds stabilize and we shift our portfolio to more production and international volume.'

1 Non-GAAP measure - see definitions at the end of this earnings release.

Northrop Grumman Corporation

2980 Fairview Park Drive * Falls Church, VA 22042-4511

news.northropgrumman.com

Consolidated Operating Results and Cash Flows: See full release at:

https://investor.northropgrumman.com/static-files/14475285-fcaf-4caa-bdd0-cff19a68f84d

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