NORTHROP GRUMMAN CORP DE
For the period ended Sep 30, 2024. Filed Oct 24, 2024.
View on SEC.govAbout this filing
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.
Sep 30, 2024 · Filed Oct 24, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Product and Service Analysis
The following table presents product and service sales and operating costs and expenses by segment:
| Three Months Ended September 30 · Nine Months Ended September 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 | $2,131 | $1,921 | $2,102 | $1,902 | $6,573 | $5,951 | $5,934 | $5,368 |
| Service | 687 | 605 | 610 | 533 | 2,059 | 1,811 | 1,759 | 1,546 |
| Intersegment eliminations | 60 | 54 | 54 | 48 | 178 | 158 | 183 | 164 |
| Total Aeronautics Systems | 2,878 | 2,580 | 2,766 | 2,483 | 8,810 | 7,920 | 7,876 | 7,078 |
| Defense Systems | ||||||||
| Product | 1,431 | 1,304 | 1,305 | 1,196 | 4,231 | 3,856 | 3,819 | 3,482 |
| Service | 436 | 394 | 548 | 480 | 1,369 | 1,207 | 1,690 | 1,486 |
| Intersegment eliminations | 217 | 190 | 197 | 173 | 627 | 550 | 549 | 485 |
| Total Defense Systems | 2,084 | 1,888 | 2,050 | 1,849 | 6,227 | 5,613 | 6,058 | 5,453 |
| Mission Systems | ||||||||
| Product | 2,014 | 1,747 | 1,841 | 1,590 | 5,793 | 5,037 | 5,490 | 4,726 |
| Service | 534 | 451 | 524 | 431 | 1,613 | 1,372 | 1,559 | 1,301 |
| Intersegment eliminations | 275 | 235 | 263 | 221 | 849 | 717 | 783 | 658 |
| Total Mission Systems | 2,823 | 2,433 | 2,628 | 2,242 | 8,255 | 7,126 | 7,832 | 6,685 |
| Space Systems | ||||||||
| Product | 2,363 | 2,077 | 2,430 | 2,210 | 7,520 | 6,706 | 7,147 | 6,494 |
| Service | 400 | 351 | 415 | 344 | 1,189 | 1,056 | 1,254 | 1,106 |
| Intersegment eliminations | 107 | 97 | 108 | 97 | 312 | 280 | 374 | 335 |
| Total Space Systems | 2,870 | 2,525 | 2,953 | 2,651 | 9,021 | 8,042 | 8,775 | 7,935 |
| Segment Totals | ||||||||
| Total Product | $7,939 | $7,049 | $7,678 | $6,898 | $24,117 | $21,550 | $22,390 | $20,070 |
| Total Service | 2,057 | 1,801 | 2,097 | 1,788 | 6,230 | 5,446 | 6,262 | 5,439 |
| Total Segment(1) | $9,996 | $8,850 | $9,775 | $8,686 | $30,347 | $26,996 | $28,652 | $25,509 |
(1)A reconciliation of segment operating income to total operating income is included in “Segment Operating Results.”
Product Sales and Costs
Third quarter 2024 product sales increased $261 million, or 3 percent, primarily due to an increase in product sales at Mission Systems and Defense Systems, partially offset by a decrease in product sales at Space Systems. The increases were principally due to higher restricted sales at Mission Systems and higher volume on Sentinel, SiAW and certain military ammunition programs at Defense Systems. The Space Systems decrease was principally due to wind-down of our work on the restricted space and NGI programs, partially offset by higher volume on the SDA T2TL programs at Space Systems.
Third quarter 2024 product costs increased $151 million, or 2 percent, consistent with the higher product sales described above and reflect a higher operating margin rate principally due to higher net EAC adjustments on Space Systems product programs.
-28-
Year to date 2024 product sales increased $1.7 billion, or 8 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, higher volume on SiAW, certain military ammunition programs and GMLRS at Defense Systems, sales growth on SDA T2TL, HALO and GEM 63 at Space Systems, and higher restricted sales, partially offset by lower SABR and F-35 volume, at Mission Systems.
Year to date 2024 product costs increased $1.5 billion, or 7 percent, consistent with the higher product sales described above and reflect a higher operating margin rate principally due to higher net EAC adjustments on Space Systems product programs.
Service Sales and Costs
Third quarter 2024 service sales decreased $40 million, or 2 percent, primarily due to a decrease in service sales at Defense Systems principally due to the completion of an international training program and lower volume on SEMA, partially offset by an increase in service sales at Aeronautics Systems driven by higher volume on restricted programs.
Third quarter 2024 service costs increased $13 million, or 1 percent, reflecting a lower operating margin rate principally due to a $16 million prior year benefit for insurance recoveries at Space Systems, changes in contract mix at Defense Systems and lower net EAC adjustments on Mission Systems service programs.
Year to date 2024 service sales decreased $32 million, or 1 percent, primarily due to a decrease in service sales at Defense Systems principally due to the completion of an international training program and lower volume on SEMA, partially offset by an increase in service sales at Aeronautics Systems driven by higher volume on restricted programs and Global Hawk.
Year to date 2024 service costs were comparable with the prior year period reflecting a lower operating margin rate principally due to lower net EAC adjustments on Mission Systems service programs, as well as a $16 million prior year benefit for insurance recoveries at Space Systems.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.