Northrop Grumman's sales declined 4% to USD8.7 billion in the third quarter of 2021 because of the recent divestiture of an information technology services business, the US defence contractor announced on 28 October.
Excluding the IT business, which Northrop Grumman sold to US government technology provider Peraton for USD3.4 billion in February, sales rose 3%.
Sales in Northrop Grumman Space Systems jumped 22% in the third quarter mainly because of the increased activity on development programmes, such as the US Air Force's Ground Based Strategic Deterrent and the US Missile Defense Agency's Next Generation Interceptor. Higher volumes on secret space programmes also fuelled the growth.
Sales decreased at both the Defense Systems and Mission Systems segments because of the IT services divestiture. Defense Systems was also hurt by the closeout of a contract at the Lake City Army Ammunition Plant in Independence, Missouri.
Sales shrank 6% at Aeronautics Systems due to lower volumes in manned and unmanned aircraft, including the F-35, the B-2 Defensive Management System - Modernization programme, certain Global Hawk programmes, and secret programmes.
Northrop Grumman's segment operating income declined 1% to USD1 billion in the third quarter, while its net earnings rose 8% to USD1.1 billion.
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