Northrop Grumman remains cautious on long-term defense spending

Sees healthy cash flow this year. Says cash from operations and free cash flow guidance is unchanged. Sees strong cash flow 2H14. Sees FY14 capital spending $600M. Says investing in new business opportunities. Says strong Q2 performance and reduction in shares for the year influenced its increase in its FY14 EPS outlook. Expects FY14 tax rate 31.5%. Still sees possible FAS pension cost increase. Comments made during the company's Q2 earnings conference call.