Northrop Grumman’s third-quarter sales rose 3% to $9.0 billion

American aerospace and defense technology company Northrop Grumman there is announced 3% increase in sales in the third quarter (Q3) of 2022.

The company’s total sales were $9 billion, compared to $8.7 billion reported in the same period in 2021.

The performance is driven by strong demand and improving trends in labor availability.

Total operating income in the quarter was $844 million, down 19% from last year’s $1.04 billion. The decrease was due to a $116 million decrease in the FAS/CAS operating adjustment and $55 million in higher unallocated corporate expenses.

Northrop Grumman’s net income was $915 million. The figure was $1.1 billion in the third quarter of 2021.

During the period ended September 30, 2022, the company reported net awards of $8.7 billion. Its backlog at the end of the quarter was $79.6 billion.

Key awards in the quarter included a $2.8 billion contract for restricted programs in Space Systems, Mission Systems and Aeronautics Systems and a $1.3 billion award for mid-course ground defense.

Among the company’s businesses, Aeronautics Systems posted a 7 percent drop in sales, from $2.72 billion to $2.53 billion.

Defense Systems quarterly sales also fell 5% in the third quarter to $1.34 billion, due to low coverage of an international training program.

Mission System sales increased 1% to $2.45 billion year over year (YoY).

Space Systems’ quarterly sales rose 18% to $3.16 billion from $2.68 billion last year.

Northrop Grumman Chairman, CEO and President Kathy Worden said, “Our solid operating performance in the third quarter reflects strong demand for our capabilities, positive labor availability trends and strong program execution.

“We remain focused on working for our clients and are confident in our ability to continue to grow our business and deliver value to our shareholders.”

The company expects its full-year sales and diluted earnings per share to be in the range of $36.2 billion to $36.6 billion and $24.50 to $25.10, respectively.