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NORTHROP REPORTS LOWER NET INCOME, TO PREVIOUSLY DISCLOSED TSSAM LOSS PROVISION

 LOS ANGELES, Feb. 17 /PRNewswire/ -- Northrop Corporation (NYSE: NOC) today reported lower net income for 1992 as a consequence of a previously disclosed loss provision made for the Tri-Service Stand-off Attack Missile (TSSAM).
 Northrop's net income for the year ended Dec. 31, 1992, totaled $121 million, or $2.56 per share, compared with $201 million, or $4.26 per share in 1991. The $152 million TSSAM loss provision, made in the third quarter of 1992, reduced the company's earnings per share after taxes by $2.13. Northrop's sales for 1992 totalled $5.55 billion, compared to $5.69 billion in 1991.
 The company reduced its net debt by 19 pct. in 1992, from $347 million at the beginning of the year to $280 million at year-end. Gross debt at the end of 1992 was $510 million, a reduction of $40 million from a year earlier.
 The company's business backlog at Dec. 31, 1992, stood at $7.2 billion, down 16 percent from the all-time high of $8.6 billion reported at Dec. 31, 1991.
 Northrop's sales for the fourth quarter of 1992 totaled $1.51 billion, down slightly from the $1.57 billion registered in the fourth quarter of 1991.
 The company reported fourth quarter net income of $55 million, or $1.17 per share, versus $159 million, or $3.36 per share in the fourth quarter of 1991. The fourth quarter of 1991 benefitted from two nonrecurring items totaling $116 million, or $2.47 per share. They were research and experimentation tax credits of $90 million, or $1.91 per share, and a $40 million favorable B-2 margin rate adjustment, worth 56 cents per share after taxes.
 The company in 1991 also elected early adoption of two new accounting standards related to retiree health costs (SFAS 106) and income taxes (SFAS 109). The after-tax cumulative net effect of these two new standards reduced first quarter 1991 net income by $67 million, or $1.43 per share.
 For all of 1992, increases in revenues from B-2 aircraft production and customer-sponsored research and development on the F/A-18E/F strike fighter more than offset declines in F/A-18C/D and 747 shipset deliveries. Sales in the missiles and unmanned vehicle systems (MUVS) area were down primarily due to the absence of sales on the Tacit Rainbow missile program, which concluded in 1991, and the $80 million sales reversal on the TSSAM program in the third quarter of 1992. Electronics segment revenues declined as a result of fewer deliveries of components for various missiles, principally the MX Peacekeeper.
 Operating profit for 1992 in the company's aircraft business segment would have exceeded that of 1991 except for the $40 million B-2 margin adjustment included in the prior year's results. Electronics segment operating profit improved over that of 1991 when this segment absorbed the cost of settling various legal and product disputes. Operating profit in the MUVS business segment declined primarily due to the $152-million TSSAM loss provision in the third quarter.
 Sales in the fourth quarter of 1992 were down primarily as a result of a decline in B-2 development contract revenues. Fewer deliveries by the Electronic Systems Division's Norwood site was the major cause of the reduction in electronics segment sales in the quarter.
 Aircraft operating profit in the fourth quarter of 1992 was lower as a result of decreased B-2 business volume and the $40 million margin increase recorded on the program in the same period of 1991. F/A-18C/D and 747 margins were also moderately lower than those in last year's fourth quarter. A loss at the Norwood site, which included a $6 million write-off of unrecoverable inventoried costs, reduced fourth quarter operating profits in the electronics business segment.
 Interest expense in the fourth quarter was $12 million, down $5 million from the fourth quarter of 1991. Interest expense for the full year declined $33 million.
 Higher pension income benefitted the quarter-to-quarter operating margin comparison by $15 million, and the year-to-year comparison by $51 million.
 Northrop had an average of 47,179,340 shares outstanding during 1992, compared with 47,075,162 during 1991.
 NORTHROP CORPORATION
 COMPARATIVE FINANCIAL RESULTS
 JANUARY 1, 1992 THROUGH DECEMBER 31, 1992
 Twelve
 March 31 June 30 Sept. 30 Dec. 31 Months
 SALES (in millions)
 1992 $1,300 $1,442 $1,294 $1,514 $5,550
 1991 1,247 1,325 1,555 1,567 5,694
 Pct.
 Change + 4.3 + 8.8 -16.8 - 3.4 - 2.5
 NET INCOME(LOSS) (in millions)
 1992 $ 47 $ 51 $ (32) $ 55 $ 121
 1991 (35) 30 47 159 201
 EARNINGS(LOSS) PER SHARE
 1992 $ 1.00 $ 1.08 $ (.69) $ 1.17 $ 2.56
 1991 (.74) .63 1.01 3.36 4.26
 NORTHROP CORPORATION
 OPERATING RESULTS
 YEAR ENDED DECEMBER 31, 1992
 ($ in millions)
 CONTRACT ACQUISITIONS
 FOURTH QUARTER TOTAL YEAR
 1992 1991 1992 1991
 AIRCRAFT $1,181 $2,546 $3,074 $6,297
 ELECTRONICS 323 226 708 793
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS 77 80 435 450
 SERVICES 19 21 89 83
 INTERSEGMENT
 ELIMINATIONS (39) 13 (142) (71)
 TOTAL $1,561 $2,886 $4,164 $7,552
 FUNDED
 ORDER BACKLOG
 DECEMBER 31,
 1992 1991
 AIRCRAFT $5,999 $7,350
 ELECTRONICS 733 831
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS 449 366
 SERVICES 47 46
 INTERSEGMENT
 ELIMINATIONS (53) (32)
 TOTAL $7,175 $8,561
 NET SALES
 FOURTH QUARTER TOTAL YEAR
 1992 1991 1992 1991
 AIRCRAFT $1,138 $1,168 $4,425 $4,282
 ELECTRONICS 245 269 806 874
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS 143 141 352 562
 SERVICES 19 25 88 95
 INTERSEGMENT
 ELIMINATIONS (31) (36) (121) (119)
 TOTAL $1,514 $1,567 $5,550 $5,694
 OPERATING PROFIT(LOSS)
 FOURTH QUARTER TOTAL YEAR
 1992 1991 1992 1991
 AIRCRAFT $90 $136 $357 $384
 ELECTRONICS 7 17 63 54
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS 3 7 (135) 33
 SERVICES 0 1 3 4
 TOTAL 100 161 288 475
 ADJUSTMENTS TO RECONCILE
 OPERATING PROFIT TO
 OPERATING MARGIN:
 OTHER DEDUCTIONS
 INCLUDED IN OPERATING PROFIT 4 4 7 16
 STATE AND LOCAL INCOME TAXES 4 (15) (12) (30)
 GENERAL CORPORATE EXPENSES (23) (22) (103) (107)
 CORPORATE RETIREE BENEFIT
 INCOME(COST) 14 (1) 49 (2)
 OPERATING MARGIN 99 127 229 352
 OTHER INCOME(DEDUCTIONS) (5) 0 (2) 5
 INTEREST EXPENSE (12) (17) (47) (80)
 INCOME BEFORE INCOME TAXES
 AND CUMULATIVE EFFECT OF
 ACCOUNTING CHANGES 82 110 180 277
 FEDERAL INCOME TAXES(BENEFIT) 27 (49) 59 9
 CUMULATIVE EFFECT OF
 ACCOUNTING CHANGES 0 0 0 (67)
 NET INCOME $55 $159 $121 $201
 AIRCRAFT UNITS DELIVERED
 F/A-18 18 20 75 80
 747 15 15 60 62
 -0- 02/17/93
 /CONTACT: Tony Cantafio of Northrop Corp., 310-201-3333/
 (NOC)


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

KJ -- LA029 -- 7432 02/17/93 14:58 EST
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Date:Feb 17, 1993
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