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.
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