Northrop Grumman Posts Strong 2Q IT SalesNorthrop Grumman Posts Strong 2Q IT Sales

Technology and defense contractor Northrop Grumman Corp. reported strong growth in IT outsourcing sales during the second quarter.

For the period, the company reported Monday that sales from its information technology division increased 11%, to $1.2 billion.

The division's operating profit improved 63% year over year from $41 million to $67 million. Last year's margins were hurt by a $16 million loss provision on a contract relating to Oracle's Enterprise Licensing Agreement with the state of California. "We were a subcontractor on the project, which the state shut down because it wasn't happy with the way things were going," a Northrop Grumman spokesman says.

Also during the second quarter, the company's IT division reported $1.1 billion in new contract acquisitions, compared with $1.0 billion in 2002.

Overall, Northrop Grumman reported net income from continuing operations of $207 million, or $1.09 per share, up from $181 million, or $1.52 per share, in the year-ago quarter. Sales increased to $6.6 billion, from $4.2 billion.