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NORTHROP REPORTS HIGHER NET INCOME ON LOWER SALES

 LOS ANGELES, July 21 /PRNewswire/ -- Northrop Corporation (NYSE: NOC) today reported second quarter net income of $53 million and earnings per share of $1.12, compared with $51 million and $1.08 per share in the second quarter of 1992.
 Northrop's sales for the quarter ended June 30, 1993, totaled $1.31 billion, down 9 percent from the $1.44 billion registered in the same period a year ago.
 The company's business backlog at June 30, 1993, was $7 billion versus $7.9 billion reported a year earlier.
 The increase in second quarter net income resulted primarily from improved operating profit in the company's aircraft business segment and a lower loss in the missiles and unmanned vehicles business (MUVS) segment. Last year's second quarter results included a $9 million loss provision for a previously undisclosed classified production contract in the MUVS business segment. This year's second quarter results contained a $5 million loss provision for the Tri-Service Standoff Attack Missile (TSSAM) program. TSSAM is the company's last remaining fixed-price research and development contract. As the company has previously noted, due to the nature of these contracts, the possibility of future provisions remains.
 Aircraft segment sales in the second quarter of 1993 decreased due to lower B-2 revenues. MUVS sales rose as a result of higher TSSAM revenues and increased deliveries of aerial targets.
 Northrop's net income for the first six months of 1993 totaled $105 million, up 7 percent from the $98 million in the same period of 1992. Earnings per share in the first half of 1993 were $2.21 compared to $2.08 in the first half of 1992.
 Operating profit for the first six months of this year improved in the aircraft business segment, mainly from a higher rate of margin recorded on the B-2 and F/A-18 programs.
 Northrop's sales for the first half of 1993 were $2.59 billion versus $2.74 billion in the first half of 1992. Lower B-2 revenues accounted for the decline.
 The company said it was lowering its overall sales forecast for 1993 to about $5.3 billion from the approximate $5.55 billion it had estimated earlier this year. The change is due to anticipated lower B-2 production revenues and a reduction in Boeing 747 fuselage deliveries from 59 to 54 shipsets.
 At June 30, 1993, Northrop's debt was $425 million, compared with $370 million at March 31, 1993, and $450 million at June 30, 1992. The company's net debt at the close of the quarter was $421 million, up $147 million from the $274 million reported at the end of the previous quarter. The increase was primarily the result of increased accounts receivable on the TSSAM program. As previously stated, the company expects to eliminate its current debt, if it chooses, by the mid-1990s.
 Northrop had an average of 47,528,675 shares outstanding during the first half of 1993, compared with 47,157,843 during the first half of 1992.
 NORTHROP CORPORATION
 COMPARATIVE FINANCIAL RESULTS
 PERIOD JANUARY 1, 1993 THROUGH JUNE 30, 1993
 Six
 March 31 June 30 Months
 SALES (in millions)
 1993 $1,275 $1,312 $2,587
 1992 1,300 1,442 2,742
 Pct Change (2 pct) (9 pct) (6 pct)
 NET INCOME (in millions)
 1993 $ 52 $ 53 $ 105
 1992 47 51 98
 Pct Change 11 pct 4 pct 7 pct
 EARNINGS PER SHARE
 1993 $ 1.09 $ 1.12 $ 2.21
 1992 1.00 1.08 2.08
 Pct Change 9 pct 4 pct 6 pct
 NORTHROP CORPORATION
 OPERATING RESULTS
 SIX MONTHS ENDED JUNE 30, 1993
 ($ in millions)
 CONTRACT ACQUISITIONS
 SECOND QUARTER FIRST SIX MONTHS
 1993 1992 1993 1992
 AIRCRAFT $995 $817 $1,996 $1,711
 ELECTRONICS 155 148 283 306
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS 10 57 147 77
 SERVICES 3 1 17 28
 INTERSEGMENT
 ELIMINATIONS (35) (51) (57) (87)
 TOTAL $1,128 $972 $2,386 $2,035
 FUNDED
 ORDER BACKLOG
 JUNE 30,
 1993 1992
 AIRCRAFT $5,922 $6,867
 ELECTRONICS 658 768
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS 417 249
 SERVICES 25 28
 INTERSEGMENT
 ELIMINATIONS (48) (58)
 TOTAL $6,974 $7,854
 NET SALES
 SECOND QUARTER FIRST SIX MONTHS
 1993 1992 1993 1992
 AIRCRAFT $1,024 $1,162 $2,073 $2,194
 ELECTRONICS 181 189 358 369
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS 120 99 179 194
 SERVICES 20 23 39 46
 INTERSEGMENT
 ELIMINATIONS (33) (31) (62) (61)
 TOTAL $1,312 $1,442 $2,587 $2,742
 OPERATING PROFIT(LOSS)
 SECOND QUARTER FIRST SIX MONTHS
 1993 1992 1993 1992
 AIRCRAFT $93 $91 $198 $173
 ELECTRONICS 14 18 31 35
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS (2) (5) (14) 0
 SERVICES 1 1 1 2
 TOTAL 106 105 216 210
 ADJUSTMENTS TO RECONCILE
 OPERATING PROFIT TO
 OPERATING MARGIN:
 OTHER DEDUCTIONS
 INCLUDED IN OPERATING PROFIT 2 2 1 2
 STATE AND LOCAL INCOME TAXES (5) (6) (14) (12)
 GENERAL CORPORATE EXPENSES (24) (23) (52) (54)
 CORPORATE RETIREE
 BENEFIT INCOME 14 11 25 23
 OPERATING MARGIN 93 89 176 169
 OTHER INCOME(DEDUCTIONS) (3) (1) 2 2
 INTEREST EXPENSE (10) (12) (20) (24)
 INCOME BEFORE INCOME TAXES 80 76 158 147
 FEDERAL INCOME TAXES 27 25 53 49
 NET INCOME 53 51 105 98
 AIRCRAFT UNITS DELIVERED
 F/A-18 C/D 16 20 30 41
 747 15 14 31 30
 -0- 07/21/93
 /CONTACT: Tony Cantafio (media) 310-201-3333 or Gaston Kent


(investors) 310-201-3423, both of Northrop Corporation/

(NOC)

CO: Northrop Corp. ST: California IN: ARO SU: ERN

EH-JB -- LA015 -- 3975 07/21/93 13:16 EDT
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Date:Jul 21, 1993
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