×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Northrop Grumman | profit | forecast | sequestration

Northrop Grumman Raises Profit Forecast Amid Budget Cuts

Wednesday, 24 July 2013 08:15 AM

Northrop Grumman Corp., the maker of Global Hawk surveillance drones, raised its profit forecast as second-quarter sales exceeded analysts’ estimates.

Net income from continuing operations rose 1.7 percent in the quarter to $488 million, or $2.05 a share, from $480 million, or $1.88 a share, a year earlier, the company said today in a statement.

The results may not compare with analysts’ estimates of $1.71 a share because of a $30 million pretax charge related to premiums paid to redeem $850 million in debt. Sales rose less than 1 percent to $6.29 billion.

Northrop, based in Falls Church, Virginia, said it expects profit from $7.60 to $7.80 a share this year, compared with a prior estimate of $6.85 to $7.15 a share. The company has divested low-margin businesses such as shipbuilding and has cut its workforce in anticipation of federal budget cuts.

Pentagon programs are being sliced $37 billion this fiscal year under a process known as sequestration that began March 1 after President Barack Obama and Congress failed to reach a broader deficit-reduction agreement.

Lockheed Martin Corp., the world’s largest defense contractor, raised its full-year profit forecast yesterday as it reported second-quarter earnings that beat analysts’ estimates.

© Copyright 2022 Bloomberg News. All rights reserved.


Economy
Northrop Grumman Corp., the maker of Global Hawk surveillance drones, raised its profit forecast as second-quarter sales exceeded analysts' estimates.
Northrop Grumman,profit,forecast,sequestration
198
2013-15-24
Wednesday, 24 July 2013 08:15 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved