Aerospace sales for Los Angeles-based Northrop Grumman were down 6 percent during the third quarter of 2006, coming in at $2.10 billion compared to $2.24 billion during the third quarter of 2005.

The decline was attributed to underperforming aircraft programs and lower revenue than last year coming from the National Polar-Orbiting Operational Environmental System of Systems (NPOESS) satellite program, according to Northrop Grumman spokesman Dan McClain. Some classified space technology programs brought in less revenue than expected as well, according to an Oct. 24 press release from Northrop Grumman.

The 2007 defense budget, though, brought good news for some of Los Angeles-based Northrop Grumman’s space programs, its chief executive officer said during a conference call with investors Oct. 24.

“Overall, our programs fared well,” said Ron Sugar, Northrop Grumman’s chief executive officer . The company in particular was pleased that more than $9 billion was allotted in the budget for missile defense, he said. The budget also saw funding allotted for the Advanced Extremely High Frequency program and Space-Based Phase Array Radars, Sugar noted.

During the third quarter of 2006, which ended Sept. 30, Northrop Grumman’s income from continuing operations was $306 million, up from $291 million during the third quarter of 2005. Third-quarter sales increased slightly, from $7.3 billion last year to $7.4 billion during this year’s .

The company’s income overall was negatively affected by a $112.5 million settlement related to microelectronics parts produced by the former TRW Inc., which Northrop Grumman acquired in 2002.