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NORTHROP REPORTS SECOND QUARTER EARNINGS UP 71 PERCENT; SALES INCREASE

 NORTHROP REPORTS SECOND QUARTER EARNINGS UP 71 PERCENT;
 SALES INCREASE
 LOS ANGELES, July 15 /PRNewswire/ -- Northrop Corporation (NYSE: NOC) today reported gains in sales, net income and business backlog for the second quarter of 1992.
 Net income for the quarter ended June 30, 1992, was up 71 percent to $51 million, or $1.08 per share, versus $29.7 million, or 63 cents per share, in the second quarter of 1991.
 Net income in the second quarter of 1992 was affected by an after-tax provision of $6 million for the estimated loss to complete a previously undisclosed classified fixed-price production contract in the missile and unmanned vehicle systems (MUVS) business segment. Last year's second quarter net income had been reduced $8.4 million from the combined effect of concluding various legal and product disputes.
 Northrop's sales for the second quarter of 1992 totaled $1.44 billion, up 8 percent from the $1.33 billion recorded in the same period of 1991.
 At June 30, 1992, the company's business backlog was $7.85 billion, up from $7.07 billion at June 30, 1991.
 Second quarter sales increased as a result of higher production revenues on the B-2, which more than offset the effect of recording three fewer 747 jetliner assembly deliveries during the period. The comparative reduction in MUVS business segment sales resulted from fewer deliveries of aerial targets and the completion last year of the Tacit Rainbow missile program.
 Northrop's sales for the first half of 1992 were $2.74 billion, up more than 6 percent from the $2.57 billion registered in the first half of 1991. Increased B-2 production revenues more than offset fewer 747 deliveries and lower electronics and MUVS segment revenues.
 Net income for the first six months of 1992 totaled $98.2 million versus a loss of $5.1 million in 1991. Earnings per share from the same period were $2.08 compared to a loss of 11 cents in the first half of 1991. Earnings in the first half of 1991 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. Prior to incorporating the cumulative effect of the accounting changes for the first half of 1991, Northrop had net income in that period of $62.3 million with earnings per share of $1.32. This included recurring charges for the accounting changes amounting in that period to $13.2 million, or 29 cents per share.
 Operating profit for the first six months improved in the aircraft and electronics business segments, but declined in the MUVS business segment due to the classified production contract loss provision made in the second quarter. 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 two quarters as compared with those of a year ago.
 Northrop's debt at June 30, 1992, was $450 million compared to $470 million at March 31, 1992, and $830 million at June 30, 1991. The company's net debt--the difference between total debt outstanding less cash and cash equivalents--at the close of the second quarter of 1992 was $363 million. As previously disclosed, the company's debt level is expected to continue to decline, but working capital requirements are not expected to produce a further reduction in net debt during the year.
 Northrop had an average of 47,157,843 shares outstanding during the first half of 1992 compared with 47,049,144 during the first half of 1991.
 NORTHROP CORPORATION
 COMPARATIVE FINANCIAL RESULTS
 PERIOD JANUARY 1, 1992 THROUGH JUNE 30, 1992
 Six
 March 31 June 30 Months
 SALES (in millions)
 1992 $1,300.5 $1,441.8 $2,742.3
 1991 1,246.8 1,325.0 2,571.8
 Pct. Change + 4.3 + 8.8 + 6.6
 NET INCOME (Loss) (in millions)
 1992 $ 47.2 $ 51.0 $ 98.2
 1991 (34.8) 29.7 (5.1)
 EARNINGS (Loss) PER SHARE
 1992 $ 1.00 $ 1.08 $ 2.08
 1991 (.74) .63 (.11)
 NORTHROP CORPORATION
 OPERATING RESULTS
 SIX MONTHS ENDED JUNE 30, 1992
 ($ in millions)
 CONTRACT ACQUISITIONS
 SECOND QUARTER FIRST SIX MONTHS
 1992 1991 1992 1991
 AIRCRAFT $817.8 $1,549.1 $1,710.9 $2,322.8
 ELECTRONICS 148.1 114.7 306.5 310.3
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS 57.2 310.3 77.8 337.6
 SERVICES 1.1 0.2 27.9 15.5
 INTERSEGMENT
 ELIMINATIONS (52.3) (16.1) (87.2) (47.8)
 TOTAL $971.9 $1,958.2 $2,035.9 $2,938.4
 FUNDED
 ORDER BACKLOG
 JUNE 30,
 1992 1991
 AIRCRAFT $6,866.7 $5,713.1
 ELECTRONICS 768.1 829.5
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS 249.3 570.9
 SERVICES 28.4 27.7
 INTERSEGMENT
 ELIMINATIONS (58.3) (71.8)
 TOTAL $7,854.2 $7,069.4
 NET SALES
 SECOND QUARTER FIRST SIX MONTHS
 1992 1991 1992 1991
 AIRCRAFT $1,162.5 $999.8 $2,194.4 $1,944.4
 ELECTRONICS 189.0 198.3 368.9 392.8
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS 99.1 133.1 194.3 244.4
 SERVICES 22.9 22.9 45.7 45.9
 INTERSEGMENT
 ELIMINATIONS (31.7) (29.1) (61.0) (55.7)
 TOTAL $1,441.8 $1,325.0 $2,742.3 $2,571.8
 OPERATING PROFIT(LOSS)
 SECOND QUARTER FIRST SIX MONTHS
 1992 1991 1992 1991
 AIRCRAFT $91.0 $88.9 $173.2 $168.1
 ELECTRONICS 17.8 (6.5) 35.1 12.8
 MISSILES AND UNMANNED
 VEHICLE SYSTEMS (4.6) 8.2 0.2 11.7
 SERVICES 0.5 1.1 1.4 2.2
 TOTAL 104.7 91.7 209.9 194.8
 LESS:
 OTHER DEDUCTIONS
 INCLUDED IN OPERATING PROFIT (2.5) (9.4) (2.5) (9.7)
 STATE AND LOCAL INCOME TAXES 6.0 5.0 12.3 11.0
 GENERAL CORPORATE EXPENSES 12.0 29.7 30.7 58.7
 OPERATING MARGIN 89.2 66.4 169.4 134.8
 OTHER INCOME(DEDUCTIONS) (0.8) 1.2 1.7 4.2
 INTEREST EXPENSE (11.8) (21.6) (23.4) (43.9)
 INCOME BEFORE INCOME TAXES
 AND CUMULATIVE EFFECT OF
 ACCOUNTING CHANGES 76.6 46.0 147.7 95.1
 FEDERAL INCOME TAXES 25.6 16.3 49.5 32.8
 INCOME BEFORE CUMULATIVE
 EFFECT OF ACCOUNTING CHANGES 51.0 29.7 98.2 62.3
 CUMULATIVE EFFECT OF
 ACCOUNTING CHANGES 0.0 0.0 0.0 (67.4)
 NET INCOME(LOSS) $51.0 $29.7 $98.2 ($5.1)
 AIRCRAFT UNITS DELIVERED
 F/A-18 20 21 41 41
 747 14 17 30 32
 -0- 07/15/92
 /CONTACT: Tony Cantafio of Northrop Corp., 310-201-3333/
 (NOC) CO: Northrop Corp. ST: California IN: ARO SU: ERN


CH -- LA023 -- 9619 07/15/92 14:09 EDT
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