Northrop Grumman, co-maker of the F-35 joint strike fighter and winner of the contract for B-21 long-range bomber, on Wednesday reported better-than-expected first quarter 2016 earnings of $556 million, up 15 percent from the first quarter of 2015.
The profit was reported on total sales of $6 billion.
The third-largest U.S. defense contractor benefited from strong demand for its fighter planes, as well as an accounting change in the treatment of share-based compensation, which resulted in a tax benefit of $80 million.
In a statement, Wes Bush, chairman, chief executive officer and president, said the first quarter result supports the company’s positive forecast for the rest of the year.
“We are positioned to achieve profitable growth over the long term,” Bush said.
Northrop’s Aerospace Systems, which accounted for more than 40 percent of revenue, saw first quarter 2016 sales increase 3 percent due to higher volume for both manned and autonomous aircraft.
The company reported a ramp-up of E-2D Hawkeye Early Warning Aircraft production, as well as higher deliveries of F-35 fighters, of which Northrop provides four major systems, including the main fuselage.
Higher sales of the unmanned aircraft Global Hawk and Triton boosted the Autonomous Systems Division.
