By Mike Stone and Nathan Gomes
(Reuters) – U.S. weapons maker Northrop Grumman Corp posted a 15% drop in quarterly sales on Thursday as labor shortages and supply chain snarls hampered its ability to deliver components for defense products including Lockheed Martin’s F-35 jets.
The company’s sales fell to $8.64 billion in the final three months of 2021, from $10.21 billion a year earlier, reflecting the toll of pandemic-related supply bottlenecks that have hobbled manufacturers across several industries.
The sales drop was somewhat capped by a 4% rise in revenue at Northrop’s space systems business as countries continued to ramp up their investments in space exploration projects.
The company’s 2022 forecast signaled the supply chain pressure was likely to continue, with projected sales of between $36.2 billion and $36.6 billion coming in below analysts’ estimates of $37.03 billion, according to Refinitiv IBES data.
Fourth-quarter net earnings, however, rose to $2.71 billion or $17.14 per share, from $330 million, or $1.97 per share, a year ago, aided by a one-time gain sale of its IT services business.
The results come after Lockheed Martin and Raytheon Technologies Corp beat analyst estimates for quarterly profit, encouraged by easing restrictions around the globe.
(Reporting by Nathan Gomes in Bengaluru; Editing by Aditya Soni)
