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CEO TELLS ANALYSTS NORTHROP EXPECTS IMPROVED CASH FLOWS IN 1994

 LOS ANGELES, Nov. 29 /PRNewswire/ -- Northrop Corporation (NYSE: NOC) said today that it anticipates better than previously planned cash flows in 1994 and expects to be able to post positive net cash by the end of that year.
 In a luncheon briefing, Kent Kresa, Northrop chairman, president, and chief executive officer, told financial analysts that, despite a projected 15 percent sales drop in 1994 from 1993 levels, Northrop expects steadily improving cash flows for the next several years. The company previously announced that 1993 sales are expected to total about $5.2 billion.
 Northrop's sales should decline next year, Kresa said, principally due to reduced B-2 revenues as well as fewer 747 deliveries to Boeing. Although Northrop declines to predict earnings as a matter of policy, Kresa noted that the company does not expect a corresponding reduction in earnings in 1994. Revenues in 1994 will include increased sales on the F/A-18 E/F program and relatively stable sales in the electronics business segment.
 Absent any major new programs or changes to the current B-2 program, Northrop projects annual sales of $3 billion to $4 billion after scheduled B-2 production ends toward the end of the decade. Over this time period, Kresa noted, Northrop expects to generate well over $1 billion in excess cash net of deferred taxes.
 "As I've said before, our primary objective, now and in the future, is to maximize the shareholder value of this company," said Kresa. "We have worked hard to achieve this healthy cash position. Management will continue to aggressively review investment options, including acquisitions, that will put this financial strength to work for Northrop's shareholders."
 Northrop is a Los Angeles-based, advanced technology company that designs, develops, and manufactures military aircraft, missiles, military and commercial aircraft subassemblies, and electronics systems. The company has a workforce of approximately 30,000 and production facilities in five states.
 -0- 11/29/93
 /CONTACT: Tony Cantafio (media), 310-201-3333 or Gaston Kent (investors), 310-201-3423, both of Northrop Corporation/
 (NOC)


CO: Northrop Corporation ST: California IN: ARO SU:

EH -- LA006 -- 8324 11/29/93 13:18 EST
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Publication:PR Newswire
Date:Nov 29, 1993
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