Northrop swings to fourth-quarter loss on B-21 bomber charge
By Pratyush Thakur and Mike Stone
Jan 25 (Reuters) - Northrop Grumman swung to a loss in the fourth quarter on Thursday, from a year-earlier profit, as it took a $1.17 billion charge related to the U.S. Air Force's next-generation B-21 stealth bomber.
The B-21 started flight tests during the fourth quarter, after which the U.S. Air Force awarded Northrop a low-rate initial production (LRIP) contract for the bomber on a fixed-price basis.
"We believe it is probable each of the first five LRIP lots will be performed at a loss," Northrop said.
The B-21 Raider, replacing the aging B-2, is a key weapon in the Pentagon's strategy against China.
The company also said on Thursday it has been awarded new contracts worth $15.5 billion, related to some big restricted programs.
Northrop reported adjusted free cash flow of $1.63 billion for the fourth quarter, ahead of analysts' estimates of $1.58 billion, according to LSEG data.
The company forecast 2024 sales between $40.8 billion and $41.2 billion. Analysts had expected $41.14 billion.
Northrop posted a fourth-quarter loss of $3.54 per diluted share, compared with a profit of $5.96 per diluted share a year ago. Overall sales rose 6% to $10.6 billion. (Reporting by Pratyush Thakur in Bengaluru)
