General Dynamics, Northrop Grumman report lower sales
Falls Church defense contractors General Dynamics Corp. and Northrop Grumman Corp. on Wednesday both reported lower sales in the second quarter.
Both companies, however, raised their profit outlook for the year as they cut costs in the face of reduced federal government spending.
General Dynamics reported $7.47 billion in revenue for the quarter, down 4.6 percent from sales during the second quarter last year.
Profit fell 15.5 percent to $541 million, or $1.58 per diluted share, compared with $640 million, or $1.81 per diluted share, the previous year.
The quarter included a $105 million charge in discontinued operations for the sale of a business within its Combat Systems unit.
The company raised its earnings predictions for the year from a range of $7.05 to $7.10 per share to a range of $7.40 and $7.45.
Northrop Grumman’s sales fell 4 percent to $6.04 billion in the second quarter. Profit at the company went up, however, growing 5 percent to $511 million, or $2.37 per diluted share, compared to $488 million, or $2.05 per diluted share.
Northrop Grumman repurchased 6 million of its shares during the second quarter.
The company raised its diluted earnings per share predictions for the year to a range of $9.15 to $9.35 per share, compared with a range of $8.90 and $9.15 per share a year earlier.