Northrop Grumman Space Sales Jump 29% in Q1
Northrop Grumman’s Space segment saw sales increase 29% in the first quarter of 2021, the company reported Thursday. Sales were $2.5 billion in Q1 of 2021, up from $1.9 billion in the same quarter last year.
According to the company, Launch & Strategic Missiles sales increased due to ramp-up on Ground Based Strategic Deterrent (GBSD) and higher volume on hypersonics programs. Space sales were driven by higher volume on restricted programs, NASA Artemis programs, and the Next Generation Overhead Persistent Infrared Radar (Next Gen OPIR) program.
Operating income for the Space segment also increased $74 million, or 37 percent, due to higher sales volume and a higher operating margin rate.
The Space segment’s success in Q1 helped the company overall reach 6% growth in sales in Q1. Sales of $9.2 billion in the quarter grew from $8.6 billion in the first quarter of 2020. Space sales helped offset lower sales at Defense Systems, which were mainly caused by the divestiture of IT services.
“First quarter results are a strong start to the year and a continuation of the positive performance we delivered in 2020,” said Kathy Warden, chairman, CEO, and president. “Our team booked competitive new awards and generated higher sales, earnings and cash.”
Strong Q1 results led Northrop Grumman to raise its 2021 guidance. The company forecasts sales between $35.3 billion to $35.7 billion. This is up from earlier guidance forecasting sales between $35.1 billion to $35.5 billion.
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