US-based aerospace and defence technology company Northrop Grumman has reported a 4% reduction in sales in the second quarter (Q2) of 2022.
The sales stood at $8.8bn, compared to $9.2bn in the same quarter a year ago.
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The company attributed the decrease in sales to ‘continued headwinds from the macroeconomic environment’. Tight labour market and extended material lead times reportedly affected the timing of sales.
Northrop Grumman’s quarterly net earnings also decreased from $1,037m, or $6.42 per diluted share in the second quarter of 2021, to $946m, or $6.06 for each diluted share.
The company’s transaction-adjusted net earnings stood at $946m in the quarter.
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Despite this, Northrop Grumman reported a backlog of $80bn during the second quarter of this year. The figure is a 6% increase from the same quarter a year ago.
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By GlobalDataIn the three-month quarter that ended on 30 June 2022, Northrop Grumman’s total operating income was $954m. The figure was $1.044bn a year earlier.
The company’s units Aeronautics Systems, and Defence Systems reported operating incomes of $258m and $168m, a decrease of 14% and 5%, respectively.
Mission Systems, and Space Systems saw an increase in operating income for the quarter.
Northrop Grumman chair, chief executive officer and president Kathy Warden said: “Northrop Grumman’s strategy to provide differentiated solutions in our customers’ highest priority areas is delivering results.
“In the second quarter, we had outstanding bookings and backlog growth, and strong segment operating margins. Demand for Northrop Grumman products and our operational performance remains strong.
“We are affirming our full-year guidance, as we see the tight labour market, that has impacted our growth in the first half, beginning to ease in the second half of the year.”
