Receive our newsletter – data, insights and analysis delivered to you
  1. News
October 29, 2021

Northrop Grumman Q3 sales dip 4% due to supply chain woes

Northrop Grumman’s third quarter 2021 sales were $8.7bn, down from $9.1bn in Q3 2020.

Northrop Grumman has reported a 4% drop in third-quarter 2021 sales due to operational distress caused by Covid-19 induced supply chain challenges.

The company’s sales totalled $8.7bn in the three-month period to 30 September 2021, decreasing by $363m from $9.1bn recorded in the third quarter of 2020.

In addition to supply chain-related challenges, the company attributed the decrease to a tight labour market and an increase in employee leave due to the pandemic.

All its business segments except for Space Systems also recorded a fall in quarterly sales.

However, Northrop’s transaction adjusted net earnings increased from $986m to $1.06bn on a year-on-year basis.

Content from our partners
Small but mighty: How TSX attenuators benefit defence and space industries
Stopping power
Army Technology Excellence Awards 2021 - Winners Announced!

The company’s total operating income was $1.04bn in Q3 2021, up from $985m in the prior-year quarter. The increase was primarily due to lower unallocated corporate expenses.

Quarterly sales in Aeronautics Systems dropped 6% to $2.73bn in Q3 2021 from $2.91bn in Q3 2021.

Defense Systems recorded a 24% drop in quarterly sales to $1.4bn while Mission Systems’ sales totalled $2.44bn after falling 5% on a year-on-year basis.

The lower sales at Defense Systems and Missions Systems were due to the divestiture of the IT services.

Meanwhile, Space Systems’ sales jumped 22% to $2.68bn.

Northrop Grumman chairman, CEO and president Kathy Warden said: “Our third-quarter results reflect strong program performance and the continued focus on operational excellence by the Northrop Grumman team.

“While we did see some labour-related and supply chain challenges stemming from the Covid-19 pandemic on our operations, we delivered solid organic growth, outstanding segment operating margins and strong transaction-adjusted free cash flow in the quarter.

“We are raising our full-year earnings guidance and continue to expect strong organic sales growth.”

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The defence industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU