Printer Friendly

NORTHROP HAS A THIRD QUARTER LOSS DUE TO PREVIOUSLY ANNOUNCED PROVISION

 NORTHROP HAS A THIRD QUARTER LOSS DUE TO
 PREVIOUSLY ANNOUNCED PROVISION
 LOS ANGELES, Oct. 21 /PRNewswire/ -- Northrop Corp. (NYSE: NOC) today reported a third quarter loss of $32.5 million, or 69 cents per share, following a loss provision announced last August for the Tri- Service Standoff Attack Missile (TSSAM).
 Northrop announced Aug. 12 that it was making a $152 million loss provision for TSSAM that would result in an after-tax loss of $100 million, or $2.13 per share, in the third quarter of 1992.
 For the quarter ended Sept. 30, 1992, Northrop had sales of $1.29 billion, down 17 percent from the $1.56 billion recorded in the same period of 1991. The company's net income in the third quarter of last year was $47.4 million, or $1.01 per share.
 At Sept. 30, 1992, the company's business backlog was $7.13 billion versus $7.24 billion at Sept. 30, 1991.
 Compared to the same period a year ago, sales in the third quarter of 1992 declined primarily as a result of the reversal of $80 million in sales on the TSSAM program, due to the schedule extension announced earlier, and the conclusion last year of the Tacit Rainbow Missile Program. Aircraft business segment sales were lower as a result of less volume on the B-2 program. The third quarter of last year included an unusually high level of B-2 subcontractor activity.
 Northrop's sales for the first nine months of 1992 were $4.04 billion, down slightly from the $4.13 billion registered in the first nine months of 1991.
 The company's net income for the first nine months of 1992 totaled $65.7 million vs. $42.3 million in 1991. Earnings per share for the same period were $1.39 compared to 90 cents in the first three quarters of 1991. Last year's nine-month reporting period included an after-tax charge of $67.4 million, or $1.43 per share, following the company's adoption of two new accounting standards (SFAS 106 and SFAS 109) related to retiree benefits and income taxes. Northrop since 1980 has been pre-funding retiree health and life benefits obligations to the extent permitted by tax regulations. As a result, the effect of the accounting change was far less than it otherwise would have been. Prior to incorporating the cumulative effect of the accounting changes, Northrop had net income in that period of $109.7 million with earnings per share of $2.33. This included recurring charges for the accounting changes amounting in that period to $19.6 million, or 42 cents per share.
 Northrop's operating profit for the first nine months improved in the aircraft and electronics business segments, but declined in the Missiles and Unmanned Vehicles (MUVS) business segment due to the TSSAM loss provision and a $9.1 million provision announced in the second quarter for a classified production contract. The improved operating profit in the aircraft segment resulted mainly from the higher rate of margin being recorded this year on the B-2 production program.
 Higher pension income and lower interest expense continue to contribute significantly to year-to-year earnings comparisons. As a result, pre-tax income improved approximately $22 million in each of this year's first three quarters as compared with those of a year ago.
 Increased working capital levels on the B-2 and TSSAM programs, and the company's acquisition for $45 million of a minority interest in the Vought Aircraft Co., resulted in an increase in Northrop's debt, which had been declining steadily. Northrop's debt at Sept. 30, 1992, was $511 million compared to $450 million at June 30, 1992, and $810 million at Sept. 30, 1991. As previously stated, the company expects to eliminate its current debt, if it chooses to, by the mid-1990s. The company also said it will use the cost method of accounting for its non-voting minority interest in Vought. Dividends, if any, would therefore be included in the company's earnings.
 Northrop had an average of 47,164,969 shares outstanding during the first three quarters of 1992 compared with 47,066,957 during the first three quarters of 1991.
 NORTHROP CORP.
 Comparative Financial Results
 Jan. 1, 1992, through Sept. 30, 1992
 Nine
 March 31, June 30, Sept. 30, Months
 Sales (in millions)
 1992 $1,300.5 $1,441.8 $1,293.6 $4,035.9
 1991 1,246.8 1,325.0 1,555.1 4,126.9
 Pct. Change 4.3 8.8 (16.8) (2.2)
 Net Income (in millions)
 1992 $47.2 $51.0 ($32.5) $65.7
 1991 (34.8) 29.7 47.4 42.3
 Earnings Per Share
 1992 $1.00 $1.08 ($.69) $1.39
 1991 (.74) .63 1.01 .90
 NORTHROP CORP.
 Operating Results
 Nine Months Ended Sept. 30, 1992
 ($ in millions)
 Contract Acquisitions
 Third Quarter First Nine Months
 1992 1991 1992 1991
 Aircraft $181.6 $1,428.2 $1,892.5 $3,751.0
 Electronics 79.3 255.7 385.8 566.0
 Missiles and Unmanned
 Vehicle Systems 280.5 33.6 358.3 371.2
 Services 41.6 46.9 69.5 62.4
 Intersegment
 Eliminations (15.7) (37.2) (102.9) (85.0)
 Total $567.3 $1,727.2 $2,603.2 $4,665.6
 Funded
 Order Backlog
 Sept. 30,
 1992 1991
 Aircraft $5,955.6 $5,971.6
 Electronics 654.9 873.7
 Missiles and Unmanned
 Vehicle Systems 515.1 427.3
 Services 47.2 50.2
 Intersegment
 Eliminations (44.9) (81.3)
 Total $7,127.9 $7,241.5
 Net Sales
 Third Quarter First Nine Months
 1992 1991 1992 1991
 Aircraft $1,092.7 $1,169.7 $3,287.1 $3,114.1
 Electronics 192.5 211.5 561.4 604.3
 Missiles and Unmanned
 Vehicle Systems 14.7 177.2 209.0 421.6
 Services 22.8 24.4 68.5 70.3
 Intersegment
 Eliminations (29.1) (27.7) (90.1) (83.4)
 Total $1,293.6 $1,555.1 $4,035.9 $4,126.9
 Operating Profit (Loss)
 Third Quarter First Nine Months
 1992 1991 1992 1991
 Aircraft $94.3 $80.0 $267.5 $248.1
 Electronics 20.7 23.4 55.8 36.2
 Missiles and Unmanned
 Vehicle Systems (138.0) 14.0 (137.8) 25.7
 Services 1.3 0.8 2.7 3.0
 Total (21.7) 118.2 188.2 313.0
 Less:
 Other Deductions Included
 In Operating Profit (Loss) (0.9) (2.8) (3.4) (12.5)
 State and Local Income Taxes 3.7 4.4 16.0 15.4
 General Corporate Expenses 14.6 26.4 45.3 85.1
 Operating Margin (Loss) (39.1) 90.2 130.3 225.0
 Other Income 0.8 1.8 2.5 6.0
 Interest Expense (11.1) (19.2) (34.5) (63.1)
 Income (Loss) Before Income
 Taxes and Cumulative Effect
 Of Accounting Changes (49.4) 72.8 98.3 167.9
 Federal Income Taxes
 (Benefit) (16.9) 25.4 32.6 58.2
 Income (Loss) Before
 Cumulative Effect
 Of Accounting Changes (32.5) 47.4 65.7 109.7
 Cumulative Effect Of
 Accounting Changes 0.0 0.0 0.0 (67.4)
 Net Income (Loss) ($32.5) $47.4 $65.7 $42.3
 Aircraft Units Delivered
 F/A-18 16 19 57 60
 747 15 15 45 47
 -0- 10/21/91
 /CONTACT: Tony Cantafio of Northrop Corp., 310-201-3333/
 (NOC) CO: Northrop Corp. ST: California IN: ARO SU: ERN


JB-JL -- LA021 -- 3103 10/21/92 16:38 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1992
Words:1241
Previous Article:NORDSTROM RECEIVES ACCESS AWARD FOR FEATURING MODELS WITH DISABILITIES
Next Article:COMMUNITY BANKERS ASSOCIATION OF NEW YORK STATE RELEASES STATEMENT ON BANKING SYSTEM
Topics:


Related Articles
NORTHROP '91 OPERATING MARGIN UP 20 PCT; NET DEBT REDUCED BY 55 PCT.
NORTHROP REPORTS HIGHER NET INCOME ON LOWER SALES
Northrop Grumman Reports First Quarter 1999 Results.
Northrop Grumman Reports 22 Percent Increase in Second Quarter Net Income; Merges Three Employee Pension Plans.
IT Sector Generates Record Sales, Margin; Northrop Grumman Reports 10 Percent Increase in Third Quarter Net Income, Strong Cash Flow.
Northrop Grumman Second Quarter Net Income Up 42%.
Northrop Grumman Reports 29% Increase in Net Income.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters