Boeing, Northrop earnings disparity show shifting fortunes
Los Angeles Times
Two of the nation’s largest aerospace companies reported sharply contrasting first-quarter financial results Wednesday as Boeing Co. said its earnings fell by half while Northrop Grumman Corp. posted a 48% jump in profit.
The results reflected the shifting fortunes of the two companies. Boeing, the world’s largest maker of commercial aircraft, has been hit hard by a recession-induced slump in air travel that has reduced demand for new planes.
On the other hand, Century City-based Northrop, which generates about 80% of its revenue from defense contracts, has been buoyed by the continued uptick in Pentagon spending. In recent weeks, Pentagon planners have called for buying more Northrop robotic planes and sophisticated surveillance electronic equipment.
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