FALLS CHURCH, Va. - For 2014, Northrop Grumman reported sales of $23.98 billion, down almost three percent from sales of $24.66 billion in 2013. The company posted net income of $2.1 billion, compared to $2.0 billion in 2013.
For the fourth quarter of 2014, sales were $6.11 billion, compared to $6.16 billion in the fourth quarter of 2013. Net income for the quarter was $506 million compared to $478 million in the year ago period.
"Our team delivered another year of strong performance in 2014. We are excited about our many future opportunities and remain committed to generating value through sustainable performance, a well-aligned portfolio and effective cash deployment," said Wes Bush, chairman, chief executive officer and president.
Total backlog as of Dec. 31, 2014, was $38.2 billion compared with $37.0 billion as of Dec. 31, 2013. For 2014, new awards totaled $25.0 billion.
INDUSTRY SEGMENTS
Aerospace Systems
Aerospace Systems 2014 sales were comparable to 2013 at $10 billion and include $75 million realized for settlements of certain legal claims related to use of the company's intellectual property and a terminated program. Excluding the settlements, sales were slightly lower than 2013 due to lower volume for unmanned, space and military aircraft programs.
Aerospace Systems 2014 operating income increased 8 percent to $1.3 billion (2013: $1.2 billion) and operating margin rate increased 110 basis points to 13.2 percent. Higher operating income and margin rate are principally due to the $75 million realized for the settlements described above and to improved performance.
Electronic Systems
Electronic Systems full year 2014 sales decreased 3 percent to $6.95 billion (2013: $71.5 billion). Lower sales are principally due to lower volume for land and self-protection programs, including fewer deliveries of infrared countermeasures and laser systems; lower volume for domestic ISR and targeting programs, including fewer combat avionics deliveries; and lower volume for navigation and maritime programs. These declines were partially offset by higher volume for international programs.
Electronic Systems 2014 operating decreased 6 percent to $1.15 billion (2013: $ 1.23 billion) , and operating margin rate decreased 60 basis points to 16.5 percent due to lower sales and a lower level of net favorable adjustments. In addition, 2013 operating income benefited from the reversal of a $26 million non-programmatic risk reserve.
Information Systems
Information Systems 2014 sales decreased 6 percent to $6.22 billion (2013: $6.6 billion), principally due to lower volume for command and control programs and communications programs due to in-theater force reductions, reduced funding levels and the wind-down of various programs.
For 2014, operating income decreased 3 percent to $146 million (2013: $159 million), and operating margin rate increased 20 basis points to 9.8 percent. Lower operating income reflects lower sales and the increase in operating margin rate is due to improved performance.
Technical Services
Technical Services 2014 sales decreased 2 percent to $2.8 billion (2013: $2.84 billion) principally due to lower volume for the ICBM, Hunter and CTTR programs, partially offset by higher international sales, principally due to the acquisition of Qantas Defence Services in the first quarter of 2014.
Technical Services 2014 operating income was $261 million (2013:$262 million) and operating margin rate were comparable to the prior year periods.
You have 0 item(s) in your cart