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NORTHROP REPORTS HIGHER NET INCOME ON LOWER SALES

 LOS ANGELES, Oct. 20 /PRNewswire/ -- Northrop Corporation (NYSE: NOC) today reported third quarter net income of $26 million and earnings per share of 54 cents compared with a loss of $32 million, or 69 cents per share, in the third


quarter of 1992. Northrop's sales for the quarter ended Sept. 30, 1993, totaled $1.22 billion, down 6 percent from the $1.29 billion registered a year ago.
 The increase in third quarter net income resulted primarily from a smaller loss in the missiles and unmanned vehicles (MUVS) business segment. Last year's third quarter results included a $152 million loss provision for the Tri-Service Standoff Attack Missile (TSSAM). This year's third quarter results reflected a $14 million TSSAM loss provision.
 The cumulative effect of the retroactive application of The Revenue Reconciliation Act of 1993 also reduced net income in the third quarter and first nine months of 1993. The 1 percentage point increase in the federal statutory income tax rate (now 35 percent) required the restatement of prior deferred tax asset and liability balances. The Act also caused an increase in the taxes provided on pretax earnings for the first three quarters of 1993. As a result, this year's third quarter net income and earnings per share were reduced by $18 million, or 38 cents per share, and $2 million, or 5 cents per share, respectively.
 Northrop's business backlog at Sept. 30, 1993, was $7.2 billion, virtually unchanged from a year earlier.
 Northrop's aircraft and electronic business segment sales in the third quarter of 1993 declined due to lower B-2 and BAT antiarmor submunition revenues. MUVS sales in the quarter rose as a result of higher TSSAM revenues. Last year's third quarter MUVS sales reflected an $80 million reversal of TSSAM sales.
 TSSAM is a highly sophisticated missile being developed for all three military services and includes four variants designed to be launched from seven launch platforms. It is the company's last remaining fixed-price research and development contract. Although details of the program remain classified, Northrop said it now can disclose that it expects to complete the flight test phase of the program by the end of 1997. As the company has previously noted, due to the nature of this type of contract, the possibility of future loss provisions remains.
 Northrop's net income for the first nine months of 1993 totaled $131 million, up 98 percent from the $66 million in the same period of 1992. Earnings per share in the first nine months of 1993 were $2.74 compared to $1.39 in the first nine months of last year.
 Operating profit for the first nine months of this year improved in the aircraft business segment, mainly from a higher rate of margin earned on the B-2 and F/A-18 aircraft programs.
 Northrop's sales for the first three quarters of 1993 were $3.81 billion versus $4.04 billion in the same period last year. The decline was due to lower B-2 revenues. The company said it expects to report fourth quarter sales of about $1.4 billion.
 At Sept. 30, 1993, Northrop's debt was $370 million, compared with $425 million at June 30, 1993, and $511 million at Sept. 30, 1992. The company's net debt at the close of the quarter was $358 million, down $63 million from the $421 million reported at the end of the previous quarter.
 Northrop had an average of 47,816,403 shares outstanding during the first three quarters of 1993, compared with 47,164,969 during the first three quarters of 1992.
 NORTHROP CORPORATION
 Comparative Financial Results
 Jan. 1, 1993, through Sept. 30, 1993
 Nine
 March 31, June 30, Sept. 30, Months
 Sales (in millions)
 1993 $1,275 $1,312 $1,220 $3,807
 1992 1,300 1,442 1,294 4,036
 Pct. Change -2 -9 -6 -6
 Net Income (in millions)
 1993 $52 $53 $26 $131
 1992 47 51 -32 66
 Pct. Change 11 4 98
 Earnings Per Share
 1993 $1.09 $1.12 $.54 $2.74
 1992 1.00 1.08 -.69 1.39
 Pct. Change 9 4 97
 NORTHROP CORPORATION
 Operating Results
 Nine Months Ended Sept. 30, 1993
 ($ in millions)
 Contract Acquisitions
 Third Quarter First Nine Months
 1993 1992 1993 1992
 Aircraft $1,064 $182 $3,060 $1,893
 Electronics 146 79 429 385
 Missiles and Unmanned
 Vehicle Systems 163 281 310 358
 Services 52 42 69 70
 Intersegment Eliminations (22) (16) (79) (103)
 Total $1,403 $568 $3,789 $2,603
 Funded
 Order Backlog
 Sept. 30,
 1993 1992
 Aircraft $6,026 $5,956
 Electronics 626 655
 Missiles and Unmanned
 Vehicle Systems 491 515
 Services 58 47
 Intersegment Eliminations (44) (45)
 Total $7,157 $7,128
 Net Sales
 Third Quarter First Nine Months
 1993 1992 1993 1992
 Aircraft $960 $1,093 $3,033 $3,287
 Electronics 178 192 536 561
 Missiles and Unmanned
 Vehicle Systems 89 15 268 209
 Services 19 23 58 69
 Intersegment Eliminations (26) (29) (88) (90)
 Total $1,220 $1,294 $3,807 $4,036
 Operating Profit (Loss)
 Third Quarter First Nine Months
 1993 1992 1993 1992
 Aircraft $84 $94 $282 $267
 Electronics 15 21 46 56
 Missiles and Unmanned
 Vehicle Systems (11) (138) (25) (138)
 Services 2 1 3 3
 Total 90 (22) 306 188
 Adjustments to Reconcile
 Operating Profit (Loss) to
 Operating Margin (Loss):
 Other Deductions Included
 in Operating Profit (Loss) 2 1 3 3
 State and Local Income Taxes (1) (4) (15) (16)
 General Corporate Expenses (19) (26) (71) (80)
 Corporate Retiree
 Benefit Income 11 12 36 35
 Operating Margin (Loss) 83 (39) 259 130
 Other Income (Deductions) (4) 1 (2) 3
 Interest Expense (10) (11) (30) (35)
 Income (Loss) Before
 Income Taxes 69 (49) 227 98
 Federal Income Taxes (Benefit) 43 (17) 96 32
 Net Income (Loss) $26 ($32) $131 $66
 Aircraft Units Delivered
 F/A-18 C/D 10 16 40 57
 747 14 15 45 45
 -0- 10/20/93
 /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

JB-EH -- LA033 -- 4646 10/20/93 14:04 EDT
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Date:Oct 20, 1993
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