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(Reuters) -Northrop Grumman Corp missed estimates for quarterly sales on Thursday, as sustained labor shortages and global supply chain issues dent deliveries for the U.S. weapons maker.
An acute labor shortage triggered by the Omicron variant of COVID-19 at the beginning of 2022 continues to hamper production and deliveries across the aerospace sector.
Northrop (NYSE:NOC)’s total sales fell to $8.80 billion in the second quarter, below Wall Street estimates of $9.07 billion, as delays from suppliers in deliveries of essential parts for the company’s products continued.
Sales at the company’s aeronautics unit, which makes military aircrafts, were down 13% at $2.53 billion in the quarter ended June 30.
Northrop, which led the industry team that made NASA’s James Webb telescope, reported an 8.4% rise in revenue in its space systems business, partially offsetting a fall in total revenue.
Earlier this month, The U.S. House of Representatives passed a bill paving the way for the defense budget to exceed $800 billion next year, authorizing $37 billion in spending on top of the record $773 billion proposed by President Joe Biden.
The Falls Church, Virginia-based company reaffirmed its full-year outlook for the second time as it expects labor market to start easing in the second half of the year, projecting sales between $36.20 billion and $36.60 billion, and transaction-adjusted earnings per share in the range of $24.50 to $25.10.
Last week, Northrop’s peer Lockheed Martin Corp (NYSE:LMT) lowered its 2022 revenue outlook as sales of its F-35 jets took a dip.
Northrop’s quarterly adjusted net earnings fell to $946 million, or $6.06 per share, from $1.04 billion, or $6.42 per share, a year ago.
