Northrop Grumman CEO: Outlook Solid Despite Earnings Miss
Ronald D. Sugar, chairman and chief executive officer of Northrop Grumman, told CNBC’s “Power Lunch” that the company had “some very terrific wins” despite missing first-quarter earnings estimates.
“We had an excellent operating quarter,” Sugar said. “We’re up in sales, profits, earnings per share and strongly up in cash and new order bookings. Overall, we’re pleased with the quarter.”
Northrop Grumman reported first quarter net profit of $387 million, or $1.10 a share, compared with $358 million, or $1.02 a share a year ago. Wall Street analysts expected the company to earn $1.14 a share.
He said the company, the Pentagon’s No. 3 supplier, has 20,000 on-going programs in a range of fields and isn’t dependant on any one contract for revenue. The company is developing a $1 billion system to sort packages for the Post Office and developing unmanned surveillance and combat aircraft.
“I think there remains very strong bipartisan support for defense of the nation and the kind of programs we’re involved in -- the longer-term programs, that involve the assets we’re going to need over the next five, 10, 15 years to fight the war on terrorism and any other threats,” Sugar said.