Northrop Boosts Earnings Forecast for Year

Northrop Grumman Corp. said Thursday that its second-quarter profit jumped 23%, beating Wall Street estimates. Sales rose 7%.

The defense contractor also raised its outlook for the year. Net income rose to $367 million, or $1 a share, from $298 million, or 82 cents, a year ago.

Revenue increased to $7.96 billion from $7.44 billion and the company said each business segment posted higher sales. Contract acquisitions were $5.6 billion in the second quarter, compared with $5.4 billion a year ago. Analysts expected earnings of 88 cents a share on sales of $7.81 billion.

Northrop produces fighter aircraft and is part of a team developing the F-35 Joint Strike Fighter, a next-generation fighter plane that can be adapted for use by all military branches.

The defense contractor also is part of a team with Boeing Co. to build the successor to the space shuttle.

The Century City-based company also builds warships, missile defense systems and unmanned surveillance aircraft.

Northrop said it expected 2005 earnings from continuing operations of $3.90 to $4 a share.

In May, Northrop predicted year-end earnings of $3.70 to $3.85 a share. It left its sales forecast unchanged at $31 billion to $31.5 billion.

For 2006, Northrop forecast earnings from continuing operations of $4.10 to $4.30 a share on sales of $32 billion. Northrop previously gave a sales range of $32 billion to $33 billion for the upcoming year.

Shares of Northrop fell 52 cents Thursday to $56.18.