Stormy outlook.Still feeling the sting of damage from Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. , Northrop
Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. Corp. posted a loss and faced opposition in the Senate last week
regarding language in a spending bill that would have the Navy re-coup
storm-related damages.
The company announced net income for the quarter ended March 31 of $358 million or $1.02 per share, down from $409 million or $1.11 per share. Revenues totaled $7.2 billion, down from $7.5 billion a year ago. The earnings include gain from the sale of Teldix aircraft parts unit, but even on an operating basis the company's earnings were down as sales fell in its shipbuilding unit. Last year's Gulf Coast hurricanes damaged Northrop's shipyards in New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded and Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by , causing $850 million in damage. It also caused delays in ship production that pushed sales down nearly 4 percent to just over $7 billion for the quarter. The company also said that it should take until the end of the year to fully recover. Northrop has sought the Navy to pay it $500 million in Katrina-related damages that the company's insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. has refused to pay, but Oklahoma Republican Sen. Tom Coburn introduced an amendment that would strip the request from a $106 billion emergency spending request currently in the Senate. "This is just another form of corporate welfare," John Hart
John Hart (about 1711 or 1713–May 11, 1779), was a signer of the United States Declaration of Independence as a representative of New Jersey. , a spokesman for the Senator said. "There are far better things to spend $500 million on than bailing out Northrop and their insurance company." |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion