Northrop Grumman Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2014; Provides Earnings Guidance for 2015
January 29, 2015 at 12:00 pm
Share
Northrop Grumman Corporation announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2014. The company reported fourth quarter 2014 net earnings of $506 million, or $2.48 per diluted share, compared to $478 million, or $2.12 per diluted share, in the fourth quarter of 2013. Operating income was $762 million against $768 million a year ago. Net cash provided by operating activities was $1,490 million against $1,204 million a year ago. Pension-adjusted operating income was $693 million against $725 million a year ago. Pension-adjusted diluted EPS was $2.26 against $2.00 a year ago. Capital expenditures were $276 million against $186 million a year ago. Earnings before income taxes was $701 million against $707 million a year ago. Sales were $6,108 million against $6,157 million a year ago.
For 2014, net earnings totaled $2.1 billion, or $9.75 per diluted share, compared to $2.0 billion, or $8.35 per diluted share in 2013. Operating income was $3,196 million against $3,123 million a year ago. Net cash provided by operating activities was $2,593 million against $2,483 million a year ago. Pension-adjusted operating income was $2,927 million against $2,955 million a year ago. Pension-adjusted diluted EPS was $8.93 against $7.88 a year ago. Capital expenditures were $561 million against $364 million a year ago. Earnings before income taxes was $2,937 million against $2,863 million a year ago. The improvements in operating income reflects a higher net FAS/CAS pension adjustment and higher segment operating income, partially offset by higher unallocated corporate expense. Sales were $23,979 million against $24,661 million a year ago.
For 2015, the company expects sales of $23,400 to $23,800 million, operating margin of mid-12%, diluted EPS of $9.20 to $9.50, cash provided by operating activities before after-tax discretionary pension contributions of $2,400 to $2,700 million and free cash flow before after-tax discretionary pension contributions of $1,700 to $2,000 million.
Northrop Grumman Corporation is one of the American leaders of the design, manufacturing and marketing of defense systems and equipments. Net sales break down by family of products as follows:
- space systems (35.5%);
- mission systems (27.7%): radar, sensors, air traffic control systems, communications, surveillance, etc. The group also offers information and command systems;
- aeronautics systems (27.5%): autonomous and manned aircraft systems, space vehicles, surveillance and reconnaissance systems, command and control systems, etc.;
- defense systems (14.9%): weapons, combat management systems, missile systems, etc.
Net sales break down geographically as follows: the United States (87.5%), Europe (6.2%), Asia/Pacific (4%) and other (2.3%).
Northrop Grumman Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2014; Provides Earnings Guidance for 2015