Northrop Grumman Corporation /quotes/zigman/236055/quotes/nls/noc NOC +0.43% reported that second quarter 2011 earnings from continuing operations totaled $520 million, or $1.81 per diluted share, compared with $740 million, or $2.44 per diluted share in the second quarter of 2010. The 2010 second quarter included a tax benefit of $298 million, or $0.98 per diluted share, Marketwatch reports.
Second quarter 2011 sales totaled $6.56 billion compared with $7.26 billion in the prior year period. New business awards for the 2011 second quarter totaled $5.1 billion, and total backlog as of June 30, 2011, was $41.8 billion. Lower second quarter 2011 sales and the total backlog reflect the impact of lower U.S. Department of Defense investment outlays (including announced force reductions in overseas contingency operations), the company's reduced participation in the Nevada National Security Site joint venture (NSTec), and delayed awards for manned aircraft programs. Second quarter 2010 sales included NSTec revenue of $152 million, and total backlog reflects an adjustment of $2.2 billion, for the reduction in the company's NSTec joint venture participation and the restructuring of the National Polar-orbiting Operational Environmental Satellite System (NPOESS).
"Our focus on performance, our portfolio and effective cash deployment continues to generate value in a challenging budget environment. While sales for the quarter were impacted by several factors, the strong margin rates generated by our businesses largely offset the effects of lower sales. Based on our year-to-date results we are increasing our EPS guidance and maintaining our guidance for cash generation, despite a reduced top line outlook that reflects the realities of our current budget environment," said Wes Bush, chairman, chief executive officer and president.
Second quarter 2011 sales totaled $6.56 billion compared with $7.26 billion in the prior year period. New business awards for the 2011 second quarter totaled $5.1 billion, and total backlog as of June 30, 2011, was $41.8 billion. Lower second quarter 2011 sales and the total backlog reflect the impact of lower U.S. Department of Defense investment outlays (including announced force reductions in overseas contingency operations), the company's reduced participation in the Nevada National Security Site joint venture (NSTec), and delayed awards for manned aircraft programs. Second quarter 2010 sales included NSTec revenue of $152 million, and total backlog reflects an adjustment of $2.2 billion, for the reduction in the company's NSTec joint venture participation and the restructuring of the National Polar-orbiting Operational Environmental Satellite System (NPOESS).
"Our focus on performance, our portfolio and effective cash deployment continues to generate value in a challenging budget environment. While sales for the quarter were impacted by several factors, the strong margin rates generated by our businesses largely offset the effects of lower sales. Based on our year-to-date results we are increasing our EPS guidance and maintaining our guidance for cash generation, despite a reduced top line outlook that reflects the realities of our current budget environment," said Wes Bush, chairman, chief executive officer and president.