Ukraine war drives Northrop quarterly sales of $9.3 billion

Robert Besser
05 May 2023, 01:39 GMT+10

Aided by demand for more weapons amid current geo-political tensions, Virginia-based Northrop Grumman has announced higher than expected first-quarter earnings
Since the start of Russia's invasion of Ukraine in February 2022 and growing US-China tensions, defense contractors have benefited from countries increasing their military spending
Northrop's rivals, Lockheed Martin and General Dynamics, also reported higher than expected sales for the quarter

FALLS CHURCH, Virginia: Aided by demand for more weapons amid current geo-political tensions, Virginia-based Northrop Grumman has announced higher than expected first-quarter earnings.

Since the start of Russia's invasion of Ukraine in February 2022 and growing US-China tensions, defense contractors have benefited from countries increasing their military spending.

Northrop's rivals, Lockheed Martin and General Dynamics, also reported higher than expected sales for the quarter, with all three potentially benefiting from Pentagon plans to spend $858 billion this year.

According to data from Refinitiv, Northrop's overall sales rose 6 percent to $9.30 billion in the reported quarter, higher than analysts' average estimate of $9.17 billion.

Boosted by further investments in space exploration, sales in the company's space system segment, covering satellites and payloads, rose by 17 percent to $3.35 billion.

The company's net income was $842 million.

However, Northrop's aeronautic systems business, its second-largest by revenue, which houses its new B21 Raider jet program, posted a 23 percent decline in operating income.

In January, the company said that due to inflation raising costs for fixed-price contracts, it was "reasonably possible" that it would lose money manufacturing jets for the US Air Force.

The company has also reaffirmed its annual outlook for sales between $38 billion and $38.40 billion.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Taiwan Sun.

More Information

32 ℃

Partly Cloudy in Taipei/Songshan

Business

Section

India's Tata chooses UK as site for new EV battery plant

LONDON, England: The BBC has reported that Jaguar Land Rover owner Tata Motors is planning to build a multi-billion pound ...

Facebook nears completion of eliminating 10,000 jobs

MENLO Park, California: As part of the last stage of a three-series round of staff layoffs, part of a plan ...

Baby formula manufacturers investigated by US for rigging bids

WASHINGTON D.C.: On its website, the US Federal Trade Commission (FTC) has said it is probing Abbott Laboratories and other ...

US Rep says expand China blacklist after ban on Micron chips

Representative Mike Gallagher, chair of the U.S. House of Representatives committee on China, says that after Beijing banned the sale ...

Investors bank on debt ceiling breakthrough, Nasdaq surges more than 2%

NEW YORK, New York - A relief rally hit Wall Street Friday as lawmakers made some progress on the debt ...

Expect supply chain shortages through 2024, says Boeing

ALEXANDRIA, Virginia: Boeing Chief Executive Dave Calhoun said sector-wide supply chain problems that have hampered global jetliner production might not ...

International

Section