Grumman’s Profit Rises in 1st Quarter

Grumman Corp. reported that its profit rose 3% in the first quarter from a year ago, helped by increased sales and a fall in research and development expenses.

The aircraft and vehicle manufacturer said its first-quarter profit edged up to $20.9 million. Revenue for three months ended March 31 totaled $852.2 million, up 3% from a year earlier.

The company attributed its revenue increase to the Air Force-Army joint STARS program and support equipment for the Navy’s E-2C and EA-6B aircraft.

Grumman also said sales from the Navy’s F-14D and A-6F aircraft development programs fell by $15 million, to $110 million. The F-14D and A-6F programs are under no-profit contracts and continue to be reported on a break-even basis, Grumman said.

The Bethpage, N.Y.-based firm also said those two programs were suffering from certain technical problems that could significantly affect costs, schedules and the aircraft’s performance. The firm said it was holding “intense discussions” on the matter with the Navy. However, until the problems are resolved, Grumman is unable to determine the extent of its losses, if any, from the programs.

Grumman’s funded order backlog as of March 31 was $7.2 billion, up 14% from a year earlier.