Northrop Grumman Corporation announced unaudited consolidated earnings results for fourth quarter and full year ended December 31, 2016. For the quarter, the company reported sales increased 12% to $6.4 billion from $5.7 billion in the fourth quarter of 2015. Net earnings increased 14% to $525 million, or $2.96 per diluted share, from $459 million, or $2.49 per diluted share, in the fourth quarter of 2015. Operating income was $831 million compared to $689 million a year ago. Earnings before income taxes were $748 million compared to $621 million a year ago. Pension-adjusted operating income was $749 million, or $2.66 per diluted share compared to $602 million, or $2.18 per diluted share a year ago. Net cash provided by operating activities was $1,531 million compared to $1,633 million a year ago. Capital expenditures were $312 million compared to $137 million a year ago.

For 2016, net earnings increased 11% to $2.2 billion, or $12.19 per diluted share on sales of $24.508 billion, from $2.0 billion, or $10.39 per diluted share on sales of $23.526 billion in 2015. Operating income was $3,193 million compared to $3,076 million a year ago. Earnings before income taxes were $2,923 million compared to $2,790 million a year ago. Pension-adjusted operating income was $2,877 million, or $11.05 per diluted share compared to $2,728 million, or $9.21 per diluted share a year ago. Net cash provided by operating activities was $2,813 million compared to $2,162 million a year ago. Capital expenditures were $920 million compared to $471 million a year ago.

The company provided earnings guidance for the full year 2017. For the period, the company expects sales of $25 billion, operating margin of mid 12%, effective tax rate of 29.5%, diluted EPS of $11.30 to $11.60, Capital expenditures of $900 million and free cash flow of $1,800 million to $2,000 million.