Release date -
Highlights:
* 2019 Net Awards Total $45.2 Billion
* Total Backlog Increases 21 percent to $64.8 Billion; 2019 Book-to-bill 1.3
* Q4 Sales Increase 7 Percent to $8.7 Billion; 2019 Sales Increase 12 Percent to $33.8 Billion
* Q4 EPS of $(2.43); Q4 Mark-to-Market (MTM)-adjusted EPS1 of $5.61;
* 2019 EPS of $13.22; 2019 MTM-adjusted EPS1 of $21.21 versus Guidance of $20.10 to $20.35
* 2019 Cash from Operations of $4.3 Billion; 2019 Free Cash Flow1 of $3.0 Billion
* Expects 2020 Sales of $35.3 to $35.8 Billion, MTM-adjusted EPS1 of $22.75 to $23.15 and
* Free Cash Flow1 of $3.15 to $3.45 Billion
FALLS CHURCH, Va. - Northrop Grumman Corporation (NYSE: NOC) reported fourth quarter 2019 sales increased 7 percent to $8.7 billion, and 2019 sales increased 12 percent to $33.8 billion. The company adopted the mark-to-market method of accounting for its pension and other postretirement benefits as of Dec. 31, 2018. Under this method the company recorded a $1.4 billion after-tax MTM expense, which resulted in a fourth quarter 2019 net loss of $409 million and 2019 net earnings of $2.2 billion. Excluding this expense, MTMadjusted fourth quarter 2019 net earnings1increased 12 percent to $949 million, or $5.61 per share, and 2019 MTM-adjusted net earnings1 totaled $3.6 billion, or $21.21 per share.
'Northrop Grumman delivered strong results in 2019, and we continue to create sustained value for our shareholders and customers through an unwavering focus on performance, innovation and agility,' said Kathy Warden, chairman, chief executive officer and president. 'With our diverse portfolio, we are positioned to meet our customers' current and emerging needs.'
1 Non-GAAP measure - see definitions at the end of this earnings release.
Northrop Grumman Fourth Quarter and Full-Year 2019 Financial Results 2
Northrop Grumman Corporation
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MTM-adjusted Earnings and EPS
Net earnings for both the fourth quarter and 2019 were reduced by a $1.4 billion after-tax MTM expense. Excluding this expense, fourth quarter 2019 MTM-adjusted net earnings1
increased 12 percent and 2019 MTM-adjusted net earnings1 decreased 3 percent. MTMadjusted earnings1 and EPS1 are the measures the company uses to compare performance to prior periods and for EPS guidance.
The table below reconciles net earnings and diluted EPS to MTM-adjusted net earnings1 and EPS1 : http://investor.northropgrumman.com/static-files/a266de36-c67c-46c7-bffd-e82a55a70905
NORTHROP GRUMMAN CORPORATION 
