Northrop Grumman’s Q1 finances have remained steady despite the impact of the Covid-19 pandemic, reporting sales increases across the board and net earnings of $868m. The results come as defence contractors Airbus and Boeing reported sweeping losses, largely due to their stagnant commercial operations.
Across the sector, defence operations have stayed relatively steady, with Boeing president and CEO Dave Calhoun saying that its Defence, Space and Security division would ‘‘limit the overall depth of the cut” caused by the continued effects of Covid-19.
Defence contractors have sought to free up cash to maintain their operations during the crisis. Already some companies have had to temporarily pause operations on some systems, whilst the US government has looked to free up funding to keep defence contractors afloat during the pandemic.
This, however, has not stopped some contractors feeling the pinch with the damage to commercial operations outweighing the steady heading of their defence divisions.