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Northrop sales fall 15% as supply chain snarls restrict deliveries -Breaking

by Mike Robinson

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© Reuters. The Northrop Grumman Building is seen in El Segundo (California), U.S.A, 7 February 2019. REUTERS/Mike Blake

Nathan Gomes, Mike Stone

(Reuters) – U.S. weapons maker Northrop-Grumman Corporation (NYSE:) reported a 15% decline in its quarterly sales Thursday due to labor shortages, supply chain problems and delays that hampered it from delivering components for defense products. Lockheed Martin (NYSE:)’s F-35 jets.

Sales fell from $10.21 trillion to $8.64 Billion in 2021 to reflect the impact of supply-related shortages, which have hampered many industries.

However, the sales decline was partially offset by an increase of 4% in Northrop’s revenue from its space systems business. This is because countries continue to invest in space exploration projects.

Refinitiv IBES data shows that the 2022 company forecast indicated supply chain pressure continued. According to Refinitiv IBES, projected sales between $36.2 and $36.6 trillion were below analyst estimates of $37.03B.

The fourth quarter net earnings increased to $2.71Billion or $17.14 per shares, as compared with $330M or $1.97/share a year ago. It was helped by the one-time sale of its IT Services business.

This is because Lockheed Martin (NYSE:) Corp and Raytheon Technologies(NYSE:) Corp beat analysts’ estimates for quarterly profit. They were encouraged by easing restrictions across the globe.

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