Litton announces fiscal 1995 results; net income from continuing operations rose 29 percent.WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Aug. 31, 1995--Litton Industries Inc. Thursday Thursday: see week. released results for its fiscal fourth quarter and year ended July July: see month. 31, 1995. Net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter and year rose 52 percent and 29 percent, respectively, exclusive of after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charges in the prior-year periods of $84.5 million ($1.85 per share). The charges related to an extraordinary loss from an in-substance defeasance In-substance defeasance Process through which debt is removed from the balance sheet but not canceled. of debt and settlement of a civil suit that were both effected in the fourth quarter of last fiscal year. Results for fiscal 1994 also included a net loss of $173.1 million ($3.79 per share) from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Fiscal 1995 fourth-quarter sales increased 16 percent over the prior-year period, due principally to inclusion of acquisitions made during fiscal year 1995 and completion of a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contract that generated approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $80 million in non-recurring revenue. Sales for the full fiscal year declined only 4 percent from 1994 despite continuing shrinkage Shrinkage The amount by which inventory on hand is shorter than the amount of inventory recorded. Notes: The missing inventory could be due to theft, damage, or book keeping errors. in worldwide defense spending. John M. Leonis, president and chief executive officer, stated: "Litton Litton can refer to:
Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings by over $70 million. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. rose 24 percent for the year. "We made significant progress during the year in executing our acquisition strategy. That strategy is designed to take advantage of the defense industry consolidation, add new products and technologies, and offset the decline in our revenue base that has resulted from diminishing di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. global defense spending. The company seeks to accelerate its acquisition effort." At July 31, 1995, Litton's backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. in Advanced Electronics was $1.8 billion, compared with $1.7 billion at fiscal 1994 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . The backlog in Marine Engineering and Production was $3.3 billion at year-end, compared with $3.7 billion a year ago. Litton is a leader in worldwide technology markets for advanced electronic and defense systems and a major designer and builder of multimission combat ships for the U.S. Navy and allied nations. -0-
LITTON INDUSTRIES INC.
Sales and Service Revenues and Operating Profit (Loss)
by Business Segment (Preliminary)
Fourth Quarter and Year Ended July 31, 1995 and 1994
(Thousands of dollars, except per-share data)
Period Ended July 31,
Fourth Quarter Year Ended
1995 1994 1995 1994
Sales and Service
Revenues
Advanced Electronics $ 550,758 $ 426,946 $1,699,731 $1,731,624
Marine Engineering and
Production 366,804 356,151 1,396,106 1,484,149
Interconnect Products 71,772 75,983 285,590 289,295
Subtotal 989,334 859,080 3,381,427 3,505,068
Intersegment eliminations (14,259) (15,138) (61,702) (59,262)
Miscellaneous -- -- -- 247
Total sales and service
revenues $ 975,075 $ 843,942 $3,319,725 $3,446,053
Operating Profit (Loss) Advanced Electronics $ 38,302 $ (57,156) $ 127,839 $ 36,246 Marine Engineering and Production 33,736 36,077 131,667 141,048 Interconnect Products 5,326 (4,155) 21,876 8,032 Subtotal 77,364 (25,234) 281,382 185,326 Intersegment eliminations 1,168 (320) (887) (3,919) Segment operating profit (loss) 78,532 (25,554) 280,495 181,407 Other unallocated expenses (12,359) (11,985) (50,482) (58,135) Interest -- net (1,086) (5,567) (3,053) (32,624) Earnings (loss) from continuing operations before taxes on income and extraordinary item 65,087 (43,106) 226,960 90,648 Taxes on income (26,386) 14,828 (91,945) (39,342) Earnings (loss) from continuing operations before extraordinary item 38,701 (28,278) 135,015 51,306 Discontinued operations -- -- -- (173,079) Earnings (loss) before extraordinary item 38,701 (28,278) 135,015 (121,773) Extraordinary loss -- (30,732) -- (30,732) Net earnings (loss) $ 38,701 $ (59,010) $ 135,015 $ (152,505) Primary earnings (loss) per share Earnings (loss) before extraordinary item Continuing operations 81 cents (62 cents) $ 2.84 $ 1.10 Discontinued operations -- -- -- (3.79) Extraordinary loss -- (67 cents) -- (67 cents) Total primary earnings (loss) per share 81 cents $ (1.29) $ 2.84 $ (3.36) Shares used in computing primary earnings (loss) per share 47,301,884 45,869,828 47,187,934 45,720,585 Dividends on preferred stock $ 205 $ 205 $ 821 $ 821 (a) In the fourth quarter of fiscal year 1994, the company settled a civil suit brought under the so-called qui tam provisions of the False Claims Act and recorded a charge of $86.0 million to the operating results of the Advanced Electronics segment. The after-tax impact of the settlement was a $53.8 million loss. (b) The in-substance defeasance of the company's 12-5/8 percent subordinated debentures on July 11, 1994, resulted in an extraordinary loss on early debt extinguishment of $49.2 million pre-tax, or $30.7 million after tax, in the fourth quarter of fiscal year 1994. (c) Discontinued operations reflected the results of Western Atlas Inc. (WAI), which comprised substantially all of the company's former oilfield services and industrial automation systems businesses. WAI's common stock was distributed to holders of Litton common stock in the form of a dividend on March 17, 1994. Fiscal year 1994 results included special charges of $179 million, net of tax, recorded to reflect the writedown of net assets in connection with WAI's decision to sell the core laboratories division of Western Atlas International Inc. and to provide for obsolescence of older technology equipment, vessels and inventory, and the consolidation of facilities. -0-
LITTON INDUSTRIES INC.
Condensed Consolidated Balance Sheets (Primary)
(Thousands of dollars)
July 31,
1995 1994
ASSETS
Current assets Cash and marketable securities $ 110,696 $ 117,104 Accounts receivable, net 432,537 320,985 Inventories less progress billings 552,195 481,073 Deferred tax assets 362,819 330,495 Prepaid expenses 18,609 14,416 Total current assets 1,476,856 1,264,073 Property, plant and equipment -- at cost 1,546,264 1,484,538 Less accumulated depreciation (924,425) (886,922) Property, plant and equipment, net 621,839 597,616 Goodwill and other intangibles, net 218,283 138,395 Other assets and long-term investments 254,244 254,212 Total assets $2,571,222 $2,254,296 LIABILITIES AND SHAREHOLDERS' INVESTMENT Current liabilities Accounts payable and other liabilities $1,203,670 $1,008,896 Taxes on income 117,947 120,511 Notes payable and current portion of long-term obligations 25,106 97,734 Total current liabilities 1,346,723 1,227,141 Long-term obligations 103,631 105,621 Post-retirement benefit obligations other than pensions 204,883 198,795 Deferred tax liabilities 51,836 48,492 Other long-term liabilities 106,006 63,833 Shareholders' investment Capital stock Voting preferred stock -- Series B 2,053 2,053 Common stock 46,182 45,914 Additional paid-in capital 284,399 273,280 Retained earnings 451,862 317,681 Cumulative currency translation adjustment (26,353) (28,514) Total shareholders' investment 758,143 610,414 Total liabilities and shareholders' investment $2,571,222 $2,254,296 -0-
LITTON INDUSTRIES INC.
Condensed Consolidated Statement of Cash Flows (Preliminary)
Year Ended July 31, 1995
(Thousands of dollars)
Cash and cash equivalents at beginning of period $ 44,526 Cash was provided by (used for)
Operating activities
Net earnings 135,015
Adjustments to reconcile net earnings to net cash
provided by operating activities
Depreciation and amortization 95,356
Net change in operating assets and liabilities 41,350
Other 1,486
273,207
Investing activities
Purchase of businesses (127,575)
Purchase of capital assets (98,281)
Decrease in other current marketable securities 22,611
Proceeds from sale of business 14,609
Other 10,941
(177,695)
Financing activities
Decrease in short-term obligations, net (73,257)
Repayment of long-term obligations (10,226)
Other 3,674
(79,809)
Resulting in increase in cash and cash equivalents 15,703 Cash and cash equivalents at end of period $ 60,229
July 31, 1995
Cash and cash equivalents $ 60,229 Marketable securities 50,467 Total cash and marketable securities $110,696 CONTACT: Litton Industries Named after inventor Charles Litton Sr., Litton Industries was a large defense contractor in the United States, bought by the Northrop Grumman Corporation in 2001. Inc., Woodland Hills Kathleen Kathleen may refer to: People with the given name Kathleen:
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