"Our team continues to show resilience and agility, which allows us to execute our strategy, deliver for our customers and support our employees and communities in the midst of a global pandemic,â€ said Kathy Warden, chairman, CEO and president of Northrop Grumman and 2020 Wash100 Award recipient.Â
Northropâ€™s fourth quarter 2020 sales increased $1.5 billion, and 2020 sales increased $3 billion. These results were attributed to higher sales at all four sectors and include a $444 million sale of equipment to a restricted customer at Aeronautics Systems.
The company noted that its Q4 net earnings reached $330 million while its net earnings for the year increased to $3.2 billion. Mark-to-market-adjusted quarter net earnings grew 16 percent to $1.1 billion, excluding after-tax MTM expenses of $774 million in both periods. The companyâ€™s 2020 MTM-adjusted net earnings saw a 10 percent hike to $4 billion.
The company reported that its quarterly operating income increased $16 million while its operating margin rate declined to 11.3 percent from 13 percent. Northrop's 2020 operating income grew $96 million due to an increase in segment operating income. 2020 operating margin rate declined to 11 percent from 11.7 percent.
Q4 segment operating income recorded $89 million due to higher operating income at space systems, defense systems and aeronautics systems. The segment operating margin rate decreased to 11.2 percent from 12.1 percent principally due to lower operating margin rates at mission systems, aeronautics systems and space systems.
"The Northrop Grumman team delivered outstanding results in 2020â€¦ Our continued growth, strong performance and portfolio-shaping decisions position us for value-creating capital deployment," Warden added.Â