Aerospace and defense contractor Northrop Grumman slashed its full-year outlook for segment operating income and adjusted earnings.

Northrop Grumman's (NYSE:NOC) shares fell as much as 15% on Tuesday after the aerospace and defense company reported a sharp drop in first-quarter profit and revenue. Management lowered its full-year earnings outlook amid production changes and the winding down of key space programs.

Northrop Grumman Corp. reported lower first-quarter profit than analysts expected and cut its earnings outlook for the year as manufacturing costs rose and the company stepped up investments in production of the B-21 bomber.