Air Platforms

Northrop announces earnings increase but warns of 2014 sequester impact

24 October 2013

US defence contractor Northrop Grumman's third quarter 2013 earnings increased 8% to USD497 million from USD459 million last year, the company announced on 23 October.

Chief executive Wes Bush also noted, however, that another round of US government spending sequestration is scheduled to be triggered in January 2014.

"As we look ahead, considering the budget environment, we would expect lower sales in 2014," Bush added. "We expect our businesses to continue to perform well and generate strong margin rates."

Still, Bush was upbeat on company performance during the most recent quarter.

"We ended the quarter with a total backlog of USD37.5 billion, which reflects new awards of USD5.9 billion, a 97% book-to-bill ratio," said Wes Bush, chairman, chief executive officer and president.

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