Northrop Grumman Corp. (NOC), the third largest U.S. defense contractor, said first-quarter profit gained 20.9 percent after the spinoff its shipbuilding unit, and increased 2011 profit estimate and quarterly dividend.
Income from continuing operations was $496 million, or $1.67 a share, compared with $410 million. or $1.34, a year earlier, the Los Angeles-based company said today in a statement. Analysts forecast $1.56, the average of 19 estimates compiled by Bloomberg. Sales fell 2.6 percent to $6.73 billion.
Chief Executive Officer Wes Bush during the quarter spun off the company’s shipbuilding unit into a standalone company called Huntington Ingalls Industries Inc., leaving a company Bush has said is more focused and profitable. He also has said the company may sell off other low-margin businesses, such as providing logistics services.
Northrop raised its full-year profit forecast to the range of $6.50 to $6.70 a share, increasing the estimate by 10 cents on both ends of the range. Sales for the year will be about $27.5 billion, the company said. Analysts surveyed by Bloomberg forecast profit of $6.68 a share on sales of $27.8 billion.
The quarterly dividend will increase 6.4 percent to 50 cents a share, the company said.
Northrop rose 41 cents to $62.90 in New York Stock Exchange composite trading. The shares have gained 7 percent this year. The Standard and Poor’s Supercomposite Aerospace & Defense Index has gained 10.5 percent in the same period.
Income from continuing operations was $496 million, or $1.67 a share, compared with $410 million. or $1.34, a year earlier, the Los Angeles-based company said today in a statement. Analysts forecast $1.56, the average of 19 estimates compiled by Bloomberg. Sales fell 2.6 percent to $6.73 billion.
Chief Executive Officer Wes Bush during the quarter spun off the company’s shipbuilding unit into a standalone company called Huntington Ingalls Industries Inc., leaving a company Bush has said is more focused and profitable. He also has said the company may sell off other low-margin businesses, such as providing logistics services.
Northrop raised its full-year profit forecast to the range of $6.50 to $6.70 a share, increasing the estimate by 10 cents on both ends of the range. Sales for the year will be about $27.5 billion, the company said. Analysts surveyed by Bloomberg forecast profit of $6.68 a share on sales of $27.8 billion.
The quarterly dividend will increase 6.4 percent to 50 cents a share, the company said.
Northrop rose 41 cents to $62.90 in New York Stock Exchange composite trading. The shares have gained 7 percent this year. The Standard and Poor’s Supercomposite Aerospace & Defense Index has gained 10.5 percent in the same period.