NORTHROP GRUMMAN CORP DE
For the period ended Jun 30, 2024. Filed Jul 25, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 25, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Product and Service Analysis
The following table presents product and service sales and operating costs and expenses by segment:
| Three Months Ended June 30 · Six Months Ended June 30 | ||||||||
|---|---|---|---|---|---|---|---|---|
| $ in millions | 2024 | 2023 | 2024 | 2023 | ||||
| Segment Information: | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses | Sales | Operating Costs and Expenses |
| Aeronautics Systems | ||||||||
| Product | $2,184 | $1,995 | $1,925 | $1,726 | $4,442 | $4,030 | $3,832 | $3,466 |
| Service | 720 | 623 | 606 | 533 | 1,372 | 1,206 | 1,149 | 1,013 |
| Intersegment eliminations | 59 | 50 | 64 | 58 | 118 | 104 | 129 | 116 |
| Total Aeronautics Systems | 2,963 | 2,668 | 2,595 | 2,317 | 5,932 | 5,340 | 5,110 | 4,595 |
| Defense Systems | ||||||||
| Product | 855 | 736 | 691 | 602 | 1,627 | 1,411 | 1,369 | 1,200 |
| Service | 435 | 376 | 534 | 480 | 876 | 763 | 1,063 | 948 |
| Intersegment eliminations | 223 | 197 | 195 | 172 | 422 | 370 | 364 | 322 |
| Total Defense Systems | 1,513 | 1,309 | 1,420 | 1,254 | 2,925 | 2,544 | 2,796 | 2,470 |
| Mission Systems | ||||||||
| Product | 1,918 | 1,685 | 1,834 | 1,573 | 3,779 | 3,290 | 3,649 | 3,136 |
| Service | 558 | 475 | 524 | 429 | 1,079 | 921 | 1,035 | 870 |
| Intersegment eliminations | 297 | 252 | 283 | 238 | 574 | 482 | 520 | 437 |
| Total Mission Systems | 2,773 | 2,412 | 2,641 | 2,240 | 5,432 | 4,693 | 5,204 | 4,443 |
| Space Systems | ||||||||
| Product | 3,119 | 2,848 | 2,991 | 2,770 | 6,330 | 5,776 | 5,862 | 5,379 |
| Service | 429 | 379 | 471 | 411 | 846 | 749 | 918 | 811 |
| Intersegment eliminations | 25 | 22 | 26 | 24 | 52 | 47 | 58 | 52 |
| Total Space Systems | 3,573 | 3,249 | 3,488 | 3,205 | 7,228 | 6,572 | 6,838 | 6,242 |
| Segment Totals | ||||||||
| Total Product | $8,076 | $7,264 | $7,441 | $6,671 | $16,178 | $14,507 | $14,712 | $13,181 |
| Total Service | 2,142 | 1,853 | 2,135 | 1,853 | 4,173 | 3,639 | 4,165 | 3,642 |
| Total Segment(1) | $10,218 | $9,117 | $9,576 | $8,524 | $20,351 | $18,146 | $18,877 | $16,823 |
(1)A reconciliation of segment operating income to total operating income is included in “Segment Operating Results.”
Product Sales and Costs
Second quarter 2024 product sales increased $635 million, or 9 percent, primarily due to an increase in product sales at all four sectors. The increase was primarily driven by higher volume on restricted programs, F-35 and Triton at Aeronautics Systems, higher volume on certain military ammunition programs, GMLRS, SiAW and IBCS at Defense Systems, sales growth on SDA T2TL and HALO at Space Systems, and higher restricted sales, partially offset by lower F-35 volume, at Mission Systems.
Second quarter 2024 product costs increased $593 million, or 9 percent, consistent with the higher product sales described above.
Year to date 2024 product sales increased $1.5 billion, or 10 percent, primarily due to an increase in product sales at all four sectors. The increase was principally driven by higher volume on restricted programs, F-35, E-2 and Triton at Aeronautics Systems, sales growth on SDA T2TL and HALO at Space Systems, higher volume on SiAW, certain military ammunition programs, GMLRS and IBCS at Defense Systems, and higher restricted sales, partially offset by lower SABR and F-35 volume, at Mission Systems.
Year to date 2024 product costs increased $1.3 billion, or 10 percent, consistent with the higher product sales described above.
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Service Sales and Costs
Second quarter 2024 service sales were comparable to the prior year period and reflect an increase in service sales at Aeronautics Systems driven by higher volume on restricted programs and Global Hawk, partially offset by a decrease in service sales at Defense Systems principally due to the completion of an international training program.
Second quarter 2024 service costs were comparable to the prior year period, consistent with the service sales described above.
Year to date 2024 service sales were comparable to the prior year period and reflect an increase in service sales at Aeronautics Systems driven by higher volume on restricted programs and Global Hawk, partially offset by a decrease in service sales at Defense Systems principally due to the completion of an international training program.
Year to date 2024 service costs were comparable to the prior year period, consistent with the service sales described above.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.