April 25 (Reuters) - U.S. defense contractor Northrop
Grumman ( NOC ) reported a 12% rise in first-quarter profit on
Thursday, supported by a global defense spending boost and a
robust backlog.
International demand for U.S. weaponry has risen following
Russia's invasion of Ukraine and conflicts in the Middle East.
"Robust global defense spending and our strong backlog,
along with expanding margins, continue to support our multi-year
outlook for free cash flow growth," said CEO Kathy Warden.
Profit in Northrop's Defense Systems segment rose 11% in the
first quarter, helped by higher demand for rocket motors and
Stand-in Attack Weapon, a tactical air-to-surface missile.
Northrop and L3Harris ( LHX ) are the only companies that
supply sought-after rocket motors, used in guided
multiple-launch rocket systems, that played a crucial role in
supporting Ukraine's defense efforts against Russian forces.
Northrop's aeronautic systems business posted a 25% jump in
operating income, benefiting from strong demand for E2 Hawkeye
aircraft and Lockheed Martin's ( LMT ) F-35.
Northrop Grumman ( NOC ), the largest subcontractor for the F-35 jet
delivery to Pentagon, has not yet been affected by delays in
software updates from Lockheed Martin ( LMT ). However, analysts
caution that further delays could potentially hit Northrop.
Last week, Northrop lost on a $17 billion contract to
Lockheed to develop the next generation of interceptors to
defend the United States against an intercontinental ballistic
missile attack.
Sales at Northrop's Space Systems division rose 9% to $3.65
billion in the reported quarter.
Total quarterly sales jumped 9% to $10.1 billion.
Overall profit rose to $944 million, or $6.32 per diluted
share, from $842 million, or $5.50 per diluted share, a year
earlier.
(Reporting by Pratyush Thakur in Bengaluru; Editing by Shinjini
Ganguli)