Northrop Grumman has revised its earnings forecast for the year as it reports an increased second quarter profit.

Second quarter income rose 4% to $460m, compared with $442m in the second quarter of last year.

Northrop Chairman Ronald Sugar now expects year-end earnings at the upper-end of its previous forecast of $4.80 – $5.05 a share on revenue of $31.5bn.

“Sales growth, higher segment operating margin and lower corporate expenses drove this quarter’s earnings increase,” Sugar says.

“Information & Services led the sales growth with a 15% increase, and all four of our businesses contributed to higher segment operating margin,”he added.

“Year-to-date we are back on track to generate higher sales, improved margin, and higher earnings.And based on year-to-date results, we expect both cash from operations and free cash flow to be in the upper end of our 2007 guidance range.”

Northrop is the world’s largest military ship builder and the third largest defence contractor in the US.

It builds nuclear submarines, stealth fighter jets, unmanned spy planes and satellites.

By staff writer