Northrop Grumman announces strong performance in Q2

29th July 2021 - 17:41 GMT | by The Shephard News Team

RSS

Northrop Grumman reports $0.4 billion of new F-35 awards. (Photo: Northrop Grumman)

Northrop Grumman has released their Q2 financial results, including sales, profit and concerns for the future.

Northrop Grumman revealed strong performance in Q2, as 2021 sales guidance has been raised from $35.8 Billion to $36.2 Billion and transaction-adjusted EPS Guidance from $24.40 to $24.80.

The Q2 sales results show an increase of 3% to $9.2 billion. This rise has been attributed to increased sales at Space Systems and Mission Systems, whereas Defence Systems has seen a lower level of sales.

The transaction-adjusted net earnings have increased from $1.03 billion in Q1 to $2.12 billion in Q2, this is a rise of 13% when compared to Q2, 2020 which reported earnings of $1.87 billion.

Net awards this quarter are valued at $6.5 billion with a backlog of $76 billion – an increase of 5% in 2021. Significant new awards include $0.4 billion for F-35, $0.3 billion for GMLRS, $0.3 billion for E-2 Hawkeye and $0.2 billion for Global Hawk.

The effective tax rate has increased from 16.5% to 20.4%, primarily due to a change made in tax revenue recognition on certain long-term contracts.

While performance has been strong, there are still many issues that are considered as risks for the future such as Covid-19, dependence on the US government for business and significant delays or reductions in appropriations for programmes